MAPPING
EU-ASEAN Relations
Gauri Khandekar
Mapping EU-ASEAN Relations
Contents
Preface 3
EU-ASEAN relations: Time for a strategic partnership 4
Brunei 20
Cambodia 24
Indonesia 28
Lao PDR 32
Malaysia 36
Myanmar 40
Philippines 44
Singapore 48
Thailand 52
Vietnam 56
Table 1: Comparative indicators 60
Table 2: Top trade partners of ASEAN member states 64
EU-ASEAN dialogues 66
List of abbreviations 68
2
About the Author
Gauri Khandekar is researcher and head of the Agora Asia-Europe programme at FRIDE.
About FRIDE
FRIDE is an independent think-tank based in Madrid and Brussels. Our mission is to inform policy and practice in order to ensure that the EU plays a
more effective role in supporting multilateralism, democratic values, security and sustainable development.
About AGORA ASIA-EUROPE
Agora Asia-Europe is a knowledge hub on EU-Asia relations, which connects think-tanks, analysts, policy-makers, opinion leaders and other experts
from both regions to discuss ways to add input and guide the EU’s approach towards Asia.
Mapping EU-ASEAN Relations
Preface
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depth review of the European Union’s (EU) relationship with
the Association of Southeast Asian Nations (ASEAN) and
each of the 10 ASEAN member countries. Individual country
briefs assess the state-of-play of the EU’s bilateral relations
with ASEAN states and outline their strengths and weaknesses,
priorities and outlook. The publication draws on an extensive
collection of statistical data and other indicators across a variety
of policy areas, and calls for a strategic partnership between the
two regional organisations.
The purpose of this exercise is not to provide comprehensive
coverage of all relevant statistical information or a conclusive
analysis of the politics and perspectives of each bilateral
relationship. ‘Mapping EU-ASEAN relations’ seeks, rather, to
capture some of the salient features of each partnership and of the
respective partners. This publication aims to help foster debate
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– an important dimension of the Union’s presence and role in a
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The study relies on a number of interviews carried out between
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Brussels and visiting experts from Asia. Data have been drawn
from a variety of authoritative sources, including the United
Nations, the World Bank, the International Monetary Fund,
the International Energy Agency, the US Energy Information
Administration, the Asian Development Bank as well as the
EU and ASEAN. Non-governmental sources include the World
Economic Forum, INSEAD Business School, Transparency
International, as well as think tanks such as the Stockholm
International Peace Research Institute (SIPRI). The author
wishes to thank Shada Islam, Director of Policy at Friends of
Europe, for reviewing the publication, the many EU and Asian
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3
EU-ASEAN relations:
Time for a strategic partnership
Introduction
4
The European Union (EU) and the Association of Southeast Asian
Nations (ASEAN) have much in common. For one, they are both
regional organisations directed to manage interdependence and
deal with security challenges. While their historical background and
degree of integration may differ, they correlate as natural partners,
as well as regional power centres. Since the establishment of formal
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the partnership has weathered numerous tribulations along the
road. The EU has been instrumental in mentoring the ASEAN
integration process. Today, EU-ASEAN bilateral ties are
thoroughly multi-layered and comprehensive, and cover a wide
array of issues, ranging from development to economics, trade
and investment, aid, and political and cultural affairs. Since 2012,
there has been an increase in high-level bilateral visits and the
initiation and completion of various agreements between the EU
and ASEAN member countries. The EU is ASEAN’s third-largest
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is also the largest source of foreign direct investment (FDI) and
critical development and humanitarian aid to the region. Yet, the
importance of the relationship and its potential are underrated.
ASEAN
in the regional context
POLITICS AND ECONOMICS
The ASEAN integration process and the bloc’s role have
developed into key features of Asian geopolitics in recent
years, especially as the global economic centre of gravity shifts
towards the continent. ASEAN’s strategic location, straddling
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and the Asian and Australian continents, places it at the core of
the region’s political topography. Three crucial international
maritime chokepoints (the Straits of Malacca, Sunda, and
Lombak-Makassar) lie in ASEAN’s territorial waters. As a
grouping of 10 rapidly developing economies, ASEAN has also
integrated itself well into the region’s economic architecture,
having signed Free Trade Agreements (FTAs) with every country
except for North Korea.
The Asian theatre is changing dramatically with the rise
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Mapping EU-ASEAN Relations
Asia, and the economic growth of India (despite the current
slowdown) and of most Asian countries. Interconnectivity
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and investment) has reached unprecedented levels amidst the
continent’s evolving economic and security landscape. While
territorial disputes are escalating in the region, a culture of
inclusivity and partnership diplomacy is also developing.
ASEAN is playing an increasingly important role in regional
geopolitics by leading efforts to create an architecture of
ASEAN-sponsored regional platforms.
These include the ASEAN Regional Forum (ARF), ASEAN
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and New Zealand), the East Asia Summit (EAS, including the
ASEAN Plus Six as well as Russia and the US), and the ASEAN
Defence Ministers Meeting Plus (ADMM+). The ARF brings
together foreign ministers of important global actors, including
the EU, to discuss critical regional and international issues.
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India, Japan, New Zealand, Republic of Korea, Russia, and
the United States. The ADMM+ is emerging as an important
forum for defence diplomacy and cooperation and has a yearURXQG ZRUNLQJ SURFHVV XQGHU ¿YH ([SHUW :RUNLQJ *URXSV
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maritime security, military medicine, counter-terrorism, and
peacekeeping operations. ASEAN’s tabletop exercises on
disaster management too have been useful in building trust
amongst various participant nations and in identifying weak
points in their capabilities and level of inter-operability.
ASEAN also sponsors two key regional free trade initiatives,
namely the ASEAN Free Trade Area (AFTA) among its member
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India, New Zealand, South Korea, and Japan.
At the same time, ASEAN aims to establish a deeper economic
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5
6
a political-security community, an economic community, and
a socio-cultural community. By 2015, the ASEAN Economic
Community is expected to resemble an EU-style common
market, with free movement of goods and services, investment
and capital, as well as skilled labour. As of late 2013, over 80
per cent of all action lines directed to building the ASEAN
Community had been completed or were being implemented.
ASEAN Chair in 2012, rebuffed its ASEAN neighbours on
any mention of issues regarding Exclusive Economic Zones
(EEZ) and the Scarborough Shoal – contentious topics in the
context of the South China Sea dispute. Nonetheless, after
intense shuttle diplomacy efforts by Indonesian Foreign
Minister Marty Natalegawa, a document entitled ‘ASEAN’s
Six-Point Principles’ on the issue of the South China Sea
was adopted a week later.
RISING AMIDST CHALLENGES
Despite growing political turbulence in East Asia, ASEAN’s
role in the region has been significantly expanding over the
past decade. Today, it helps facilitate dialogue among major
powers (China, India, Japan, and the US) through a policy of
leveraged equidistance – all actors have an equal status at the
table, no one country drives the agenda, and no countries are
singled out or excluded. Maritime security is a particularly
serious challenge, not only in South-East Asia, but throughout
the Asian continent too: from the Gulf of Aden to the East
China Sea. Building cooperative solutions that include all
actors is a key priority for the years to come. ASEAN’s
Expanded Maritime Forum (AEMF), held for the first time
in 2012 amongst ASEAN members, plus Australia, China,
India, Japan, New Zealand, South Korea, Russia, and the US,
focused on the relevance of the United Nations Convention on
the Law of the Sea and new dispute settlement mechanisms.
Noticeably, the EU was not involved.
ASEAN finds itself at the centre of important security
hotspots or international tensions, such as the South China
Sea dispute, which carry growing implications for global
affairs. Despite the fact that there are some ASEAN member
states involved in the aforementioned dispute, ASEAN as a
bloc has made remarkable efforts at peacefully managing
the issue, especially by seeking to establish a regional code
of conduct. Such engagement, however, has sometimes
come at the cost of ASEAN’s unity. China has been able
to curry favour in Cambodia, Myanmar, the Lao People’s
Democratic Republic (PDR) and at times even Indonesia.
The failure for the first time in ASEAN’s 45-year history
to issue a joint communiqué following a foreign ministers’
meeting in July 2012 in Phnom Penh brought to the fore the
existing differences among member states. Cambodia, as
Mapping EU-ASEAN Relations
ASEAN has sought to assume the role of the region’s peacebuilder. As such, ASEAN could become an important gateway
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the Asian continent and the US rebalancing towards Asia, it is
vital for the EU to step up its own engagement in the region.
An upgrade in EU-ASEAN bilateral relations is needed to
underpin changing dynamics in a challenging geopolitical
and economic environment.
EU-ASEAN relations
The EU-ASEAN relationship is an evolving one, which
advances as the two organisations develop. This provides much
scope for innovation. The similarities in terms of identity and
ambitions between the two parties, as organisations aimed at
promoting regional cooperation, has been the foundation on
which relations were built. Both intend to enhance security,
prosperity, and regional stability, although by following
different approaches to regional integration. Being more
advanced, the European project has been an inspiration for
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bastion of EU-ASEAN ties. The EU has played an important
role by mentoring and supporting ASEAN not only through
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experiences, exchanges, and numerous concrete projects.
As a result, ASEAN today is arguably the most advanced
regional organisation in the world after the EU.
In April 2012, the EU and ASEAN signed in Bandar Seri
Bagawan (Brunei) a new 5-year Plan of Action, which provides
a political framework to strengthen dialogue. It builds on the
ASEAN-EU Plan of Action to Implement the Nuremberg
Declaration on an EU-ASEAN Enhanced Partnership (2007–
12). The main gist of the new plan is engagement on a
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to collaborate more with ASEAN on political issues. It does
not, however, constitute a major leap into completely new
areas of collaboration, but is rather an effort at formalising
cooperation by enumerating projects and programmes on
which both sides can work together in the politico-security
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issues. The partners have also provided for an annual review
7
mechanism to be carried out through the ASEAN-EU Joint
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Bagawan Plan of Action ushers in a new phase in the ASEANEU partnership by acknowledging important changes that are
taking place on both sides, especially as concerns ASEAN’s
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and beyond.
8
The EU supports the 3-pillar blueprint that ASEAN aims to
establish by 2015. Apart from sharing expertise in several
fields (see box 1), during 2007–13 the EU provided around
€70 million to support the ASEAN integration process. Other
international actors like the US, Australia, Japan or the Asian
Development Bank (ADB) also provide crucial assistance.
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economic crisis, the EU is the only international actor who
can share decades of experience in terms of confidencebuilding, resource-pooling, and shared decision-making,
thereby helping foster regional cooperation within ASEAN.
Working with ASEAN concurrently fulfils two of the EU’s
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supporting regional cooperation and multilateralism at large.
EU support to ASEAN
Examples of EU-funded projects include:
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TRADE AND INVESTMENT
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Economics is a key dimension of the EU-ASEAN partnership.
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in goods reached €181.36 billion. The EU is ASEAN’s thirdODUJHVWWUDGLQJSDUWQHUDIWHU&KLQDDQG-DSDQDFFRXQWLQJIRU
per cent of ASEAN’s total external trade. With a share of 5.2 per
cent of the EU’s total external trade, in 2012 ASEAN was the
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Singapore, Malaysia, Thailand, Indonesia, and Vietnam.
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Singapore accounts for more than 35 per cent of the EU’s
total trade with ASEAN and is the only ASEAN member state
with which the EU enjoys a trade surplus. Indonesia, which
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7.25 per cent of total EU-ASEAN trade in goods. In terms of
services, Singapore is again the EU’s top trade partner within
ASEAN, followed by Malaysia, Thailand, Indonesia, and the
Philippines (2012). Only Thailand enjoys a surplus in services
trade with the EU. From 2010 to 2013, trade in goods with
10
ASEAN increased by 39.5 per cent and trade in services by 27 per
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enjoying duty and quota-free access on all exports except arms
and ammunition to the European single market.
an increasingly prosperous ASEAN market, today the EU
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the pursuit of bilateral FTAs has been challenging, it will be
even more difficult to seam them together given the differing
levels of ambition. The most advanced of these agreements
is the EU-Singapore FTA.
The EU is the top investor in ASEAN, with an annual €9.1
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In 2010, EU outward FDI stock to ASEAN was €192.7 billion
and EU inward FDI stock from ASEAN was €67.9 billion, of
which Singapore was the largest source (over 95 per cent).
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and Singapore, while negotiations with Thailand and Malaysia
are ongoing. Meanwhile, the FTA with Singapore was completed
in December 2012, although it has not yet entered into force.
FTA negotiations have been launched with Malaysia (in 2010),
Vietnam (in 2012), and Thailand (in 2013), and scoping exercises
are ongoing with the Philippines, Brunei, and Indonesia.
Following the failure of initial efforts to construct a regionto-region FTA, initiated in 2007, in 2009 the EU decided to
pursue a strategy of ‘bilateral building bloc FTAs’ with a set
of ASEAN members. This has been criticised as detrimental
to ASEAN unity and EU ambitions to foster regional
integration. In addition, these negotiations were initially
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cumbersome ratification processes by both sides. With a
view to reducing the length of the process and tapping into
POLITICAL COOPERATION
Beyond sharing experiences and providing support to
ASEAN’s regional integration efforts, the EU has been an
important development partner to the bloc. Over decades, EU
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Mapping EU-ASEAN Relations
on large sections of ASEAN society and in strategic areas like
poverty alleviation, elevating local standards of living, support
to farmers and small industries, health and education, law
enforcement, government reform, mine action, and focused
support for vulnerable sections of society. From 2007–12, the
EU extended around €2 billion to individual ASEAN member
states and €70 million was offered to the ASEAN Secretariat,
in addition to sums granted by individual EU member
states. EU emergency assistance and disaster relief aid too
have been crucial, especially in a region that for the past 30
years has suffered most of the world’s fatalities arising from
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90 per cent of global natural disaster fatalities in the same
period, according to the United Nations Economic and Social
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which has been directed towards South-East Asia.
EU engagement has not eschewed involvement in domestic
politics in ASEAN countries, seeking to support institution- and
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respect for human rights, and democracy have consistently been
mainstreamed into EU-ASEAN cooperation and dialogue. The
hallmark of such engagement has been the EU’s strong stand
against the up until recently authoritarian regime in Myanmar,
which very much affected EU-ASEAN relations too. Not only
did the EU protest against Myanmar’s accession to ASEAN in
1997 by suspending ministerial-level talks with the bloc, but it
also refused to attend the ASEM summit if Myanmar were to
join. Leading the international estrangement of Myanmar, the EU
championed the cause of democracy and its advocates. The EU
already holds bilateral local human rights dialogues (at the level
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such a dialogue could be held with Myanmar in the near future.
While these dialogues have had little demonstrable impact on
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society in countries where civil society groups have been invited
to participate.
The EU has actively sought to broaden the political dimension
of its relations with ASEAN. Today, a number of initiatives,
especially in the security sector (both traditional and nontraditional security), have helped up the ante on the EU’s
political engagement with the bloc. The partners cooperate
11
12
on issues such as disaster preparedness, mediation and
reconciliation, migration and mobility, border protection,
maritime issues, climate change, energy, counter-terrorism,
preventive diplomacy, crisis management and response,
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WR &RPEDW7HUURULVP DW WKH th Ministerial Meeting. While
operational cooperation remains limited, consultations have
increased. Together with Singapore, Norway, and contributing
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Aceh, Indonesia (Aceh Monitoring Mission), which lasted
from September 2005 to June 2012.
A new comprehensive ASEAN-EU Migration and
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region, as well as intra-regional connectivity. With Myanmar,
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support to the implementation of the ASEAN Agreement on
Disaster Management and Emergency Response (AADMER)
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been instrumental.
In 2013 the EU contributed with €30 million to ethnic peace
processes in Myanmar, in addition to €700,000 as start-up
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Yangon. The EU is also extending support to the South(DVW$VLDQ &KHPLFDO %LRORJLFDO 5DGLRORJLFDO DQG 1XFOHDU
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in 2013, as well as engaging on mediation consultation with
the ASEAN Institute for Peace and Reconciliation.
The EU participates in a series of ASEAN-sponsored and
other regional politico-security oriented fora. It has been a
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Javier Solana, who maintained frequent contacts with Asian
governments. Following a lull in attendance to the region’s
fora and in bilateral visits, the years 2012 and 2013 witnessed
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several commissioners), as well as EU member states’ leaders
and ministerial delegations. The EU has also expressed
much interest in cooperating with the US in Asia following
Washington’s rebalance towards the region, as can be seen
in a joint statement issued on 12 July 2012 in Phnom Penh,
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Mapping EU-ASEAN Relations
empowering ASEAN, is a priority for the EU. To this extent,
the Union has voiced concerns over rising insecurity and backs
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Sea, as well as a peaceful resolution of the dispute.
But the EU could do more to strengthen its political presence
in the region. Much cooperation on political issues such
as maritime security, counter-terrorism, cyber-security,
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conferences and workshops, visits to EU institutions,
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could be expanded in some areas or started for example on
the issue of maritime security. Enhancing the capability and
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information – could be a valid option. The United Kingdom,
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the EU should consider applying for membership.
The ADMM+ has emerged as an important security
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the course of the year and the region’s militaries have the
opportunity to cooperate in a multilateral setting. The conduct
of joint country military exercises involving 18 countries in
areas such as maritime security, humanitarian assistance,
disaster relief, military medicine, or counter-terrorism is
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important void in the region’s security architecture. The EU
should endeavour to seek membership of the ADMM+, which
would allow it to show its commitment and further contribute
to regional stability while it awaits membership to the EAS.
This could also provide the basis for future cooperation,
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Asia’s regional architecture is becoming increasingly specialised and issue-focused. To this extent, in order to engage in the
region’s dialogue on maritime issues, the EU should also seek
to be included in the ASEAN Expanded Maritime Forum.
GLOBAL GOVERNANCE ISSUES
The population of the EU and ASEAN combined surpasses 1.1
billion people. Both have an important stake in global affairs
and in building an organised multipolar world. Indonesia
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13
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themselves on similar wavelengths on a number of critical
international issues, where the EU often faces resistance from
some of its so-called strategic partners.1&OLPDWHFKDQJHDQG
non-proliferation are two such examples.
14
While the EU has led international efforts for concerted
action to counter climate change, ASEAN as a group has
also sought to reach a comprehensive multilateral agreement.
ASEAN countries are acutely vulnerable to climate change.
A 2009 Asian Development Bank (ADB) report states that
South-East Asia ‘is likely to suffer more from climate change
than the rest of the world, if no action is taken’. While
ASEAN member states have distinct national positions, there
is a shared understanding at the regional level on this issue.
The 2011 statement of ASEAN leaders on climate change
explicitly recognises the region’s acute vulnerability to
climate change, and has been implemented through an ASEAN
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a regional platform that aims to enhance inter-institutional
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ASEAN has also established a multi-sectoral framework on
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use of natural resources, extreme events, energy, transport,
and sustainable cities. It represents a comprehensive
approach to tackle the impact of climate change in three
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the forestry sector to support global and regional initiatives to
reduce emissions from deforestation and forest degradation.
Under its Vision 25/25 (the government’s energy strategy),
Indonesia, one of ASEAN’s largest economies, targets a 25
per cent renewable share in its energy mix by 2025. Indonesia
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energy (sustainable energy generated and stored in the Earth)
potential, but so far has harnessed only a tiny fraction of it.
Yet, despite the similarities in aims and ambitions, the EU
and ASEAN have so far failed to join forces at the global
climate change conferences. There is, however, budding
recognition of the scope for the two blocs to align positions
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Mapping EU-ASEAN Relations
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concrete bilateral cooperation can be developed, in particular
at the multilateral level. EU and ASEAN member states are
signatories of both the Nuclear Non-Proliferation Treaty
137 DQG WKH &RPSUHKHQVLYH 7HVW %DQ 7UHDW\ &7%7
and are strong proponents of non-proliferation. In addition,
ASEAN countries signed in 1995 the Bangkok Treaty,
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large regional blocs, the EU and ASEAN together can make
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aims to facilitate cooperation and coordination of national
and regional efforts and to develop national response plans
according to international standards. The EU-sponsored
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2013, could prove effective in developing and coordinating
national response plans within ASEAN and enabling regional
coordination.
On the international level, EU-ASEAN ties could reverberate
deep. Their shared interests on global security and peace, in
particular on counter-terrorism, rule of law, management of
shared commons, economic stability, and climate change
action provide the fabric for stronger mutual engagement in
reforming and supporting global governance.
Prospects for the
ASEAN-EU partnership
ASEAN and the EU represent major opportunities for each
RWKHU $FFRUGLQJ WR ,+6 *OREDO ,QVLJKW E\ WKH \HDU ASEAN may have a $10 trillion economy. Taken as a bloc, it
would eclipse Japan’s economy and become one of the world’s
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1 per cent would live in extreme poverty, per capita income
would be as high as $12,000 and 65 per cent of ASEAN’s
population would belong to the middle class (up from the
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15
favourable demographics, ASEAN will be at the core of the
fastest growing region on the planet. Aside from Singapore,
the current tier of more prosperous ASEAN member states
including Indonesia, Vietnam, Philippines, Malaysia, and
Thailand represent a new generation of high-growth emerging
economies.
16
Indonesia’s rise stands out. According to the National
,QWHOOLJHQFH &RXQFLO¶V *OREDO7UHQGV 5HSRUW E\ Indonesia may become the seventh-largest economy in the
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US. Its rise would be supported by its robust potential for
growth, with a favourable age structure (70 per cent of its by
then 289 million strong population would be between 15–69
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urbanisation rate (71 per cent of the population living in cities
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The less-developed ASEAN members, including Lao
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terms of expected growth rates and largest (in relation to
their population) increment of the middle class. Myanmar
in particular holds much potential for rapid growth and
development given its rich natural resources, abundant labour
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International Monetary Fund (IMF) has forecast Myanmar’s
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annually for the next two decades if the country’s political
and economic reforms continue. According to McKinsey
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D IROG ULVH ZLWK PLOOLRQ PLGGOHFODVV FRQVXPHUV million today) and a threefold rise in consumer spending
from $35 billion to $100 billion.
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infrastructure development of ASEAN countries are
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not been drawn, according to McKinsey just Myanmar
would need around $650 billion in investments to achieve
its growth potential by 2030. Released in 2011, Indonesia’s
infrastructure master plan for economic development through
2025 (called MP3EI) envisages eight infrastructure projects
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of nearly $500 billion, a third of which would come from
the government, and the rest from the private sector. The
inadequacy of infrastructure in ASEAN member countries
impedes the integration of the South-East Asian market
and reduces the overall competitiveness of the bloc against
Mapping EU-ASEAN Relations
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geographical location of ASEAN, scattered over water bodies
and international maritime bottlenecks, connectivity within
the bloc will be critical in order to ensure growth as a regional
organisation and an economic entity.
Prospects for ASEAN growth up to 2030 represent major
opportunities for the EU to generate prosperity, growth, and
jobs back home. The EU is best placed to create a continental
level platform for European companies investing in SouthEast Asia, for example in the infrastructure construction sector.
McKinsey notes that Indonesia’s path to modernisation and
urbanisation alone ‘could create a $1.8 trillion private-sector
business opportunity by 2030’. Urbanisation partnerships
with ASEAN countries can become a building-bloc of
forward-looking relations in a domain where the EU has much
expertise, in particular as concerns connectivity. The recent
normalisation of relations between the EU and Myanmar
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macro-economic policies, and enhance rule-making capacity
and transparency at a supranational level.
The EU-ASEAN relationship must now move to the next level
and both sides need to make efforts to underpin a changing
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extended almost $20 billion in aid to ASEAN countries aimed
at development and disaster preparedness, to be delivered in
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6HPHVWHU¶LQWHUPVRIWKHIUHTXHQF\RIWRS(8RI¿FLDOV¶YLVLWV
to the region, the EU needs to sustain the momentum. Unlike
established global powers, the EU’s ever changing, complex,
sui generis structure means that it has constantly to engage
external partners in order to improve their understanding of
its functioning and objectives, including vis-à-vis ASEAN.
While seeking an equal partnership with the EU beyond the
traditional donor-recipient angle, ASEAN should make proDFWLYH HIIRUWV WR GHYHORS D PXWXDOO\ EHQH¿FLDO UHODWLRQVKLS
In this regard, facilitating the EU’s engagement in its own
region and regional formats would be an effective option. By
supporting the EU’s EAS bid, ASEAN stands to gain a likeminded partner and a deeper partnership.
17
Conclusion
The EU-ASEAN relationship contains many ingredients of a
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capacity and a wealth of ideas and initiatives to develop. Both
partners can do a lot to achieve respective strategic needs.
EU-ASEAN relations have grown in parallel to both regional
blocs’ integration and future relations hold further potential.
18
By acknowledging each other as strategic partners, the EU
and ASEAN would send a strong signal to one another and the
rest of the world regarding the importance they attach both to
bilateral relations and to the notion of regional integration.
Such an upgrade in relations would also facilitate Europe’s
engagement in the broader Asian theatre. While the EU has
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South-East Asia, its membership of the EAS remains pending
until it can demonstrate a stronger commitment to the region
and Asian countries are persuaded of the added-value that the
Union could bring.
The EU and ASEAN have a multi-layered relationship, but
there is no bilateral summit mechanism at the highest level of
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the highest-level meeting between the two sides is the
ASEAN-EU Ministerial Meeting. Summits can often provide
a very important political impetus to bilateral relations and, if
carried out well, can present an opportunity to craft strategic
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requires even closer coordination amongst partners. Summits
could also bring much-needed coverage to the relationship
and could help raise the visibility of the EU and ASEAN in
each other’s regions.
There is no individual EU Ambassador or Special
Representative assigned to ASEAN, nor is there an ASEAN
Ambassador to the EU. The EU Ambassador to Indonesia also
serves as an Ambassador to ASEAN (and Brunei Darussalam).
,Q DGGLWLRQ (8 PHPEHU VWDWHV KDYH DFFUHGLWHG WKHLU
ambassadors to ASEAN. The 10 Ambassadors of ASEAN
member countries to the EU engage on ASEAN-related
matters with the EU while representing their nations. The US
has assigned a separate Ambassador to ASEAN since 2011
in recognition of the growing importance of the organisation,
as well as the need to increase engagement with the bloc.
The creation of equivalent posts between the EU and
Mapping EU-ASEAN Relations
ASEAN could enhance diplomatic relations by facilitating
communication, increase the focus on the relationship, and
send a signal regarding the strategic significance of the
bilateral relationship for both sides.
The 2012 Bandar Seri Bagawan Action Plan has set an
important roadmap to strengthen cooperation and dialogue
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relations need to be underpinned by a stronger political
endorsement that upgrades the 2007 EU-ASEAN Enhanced
Partnership to a strategic partnership. Q
19
Brunei
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independence from the UK. A micro nation of around half a
million people on the island of Borneo, Brunei is the fifthULFKHVW FRXQWU\ LQ WKH ZRUOG LQ WHUPV RI *'3 SHU FDSLWD
A Muslim Sultanate, Brunei’s economy grew by 56 per
cent between 1999–2008 (thanks to crude oil and natural
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nearly 95 per cent of exports), transforming the country into
a developed, industrialised nation. Brunei ranks second on
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after Singapore.
The last four years have seen an intensification of the
relatively limited bilateral relations between the EU
and Brunei. For a period of three years starting in July
2009 Brunei was the country-coordinator for ASEAN-EU
relations and in 2013 it held the ASEAN chairmanship. EU
+LJK 5HSUHVHQWDWLYH &DWKHULQH $VKWRQ WUDYHOOHG WZLFH WR
Brunei in the past two years. In April 2012, she attended
the EU-ASEAN Ministerial Meeting, where she also met
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Brunei
Seri Bagawan Action Plan to Strengthen the ASEAN-EU
Enhanced Partnership (2013–17) was also signed at the
meeting. During the same visit, the EU and Brunei decided
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towards a Free Trade Agreement (FTA) with the EU, but
which will also allow both sides to strengthen cooperation
in areas like climate change, sustainable development,
culture, and education. The fourth round of negotiations
was completed in November 2013 and the next round is
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would also help the EU tap into the full economic potential
of the EU-Brunei relationship.
Trade between the EU and Brunei is very small, with just
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since 2008 and more than doubled in one year, from
€599 billion in 2011. Bilateral trade consists of mainly
merchandise, motor vehicles, and chemicals. The UK is
an important trade partner for Brunei, accounting for the
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France, and Belgium. Overall, the EU is Brunei’s fifthlargest trading partner after Japan, South Korea, Singapore,
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are the key consumers of Brunei’s principal exports of
natural gas, crude petroleum, and refined products. The EU
is also the largest investor in Brunei, with almost 70 per cent
of foreign direct investment (FDI) into the country, most of
which comes from the UK and France. The UK in particular
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EU member states’ economic diplomacy has been strong in
Asia, including in Brunei. Other priorities of the relationship
include cooperation on natural disasters, the prolonged
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burning across the border in Indonesia and affecting Brunei,
21
Malaysia, Singapore, Indonesia, and Southern Thailand),
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caning, lack of free media, freedom of peaceful assembly
and association, political rights, religious freedom, and
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human rights clause.
22
The EU has no permanent representation in Brunei and the
EU Ambassador to Jakarta and ASEAN oversees relations
with the country. Brunei officials note that the EU became a
more visible partner only after the 2011 announcement of the
US pivot to Asia, when bilateral and inter-regional relations
appeared to have shifted gear. The US has been increasing
its political investment in Brunei. Former Secretary of
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administration is seeking to enhance cooperation, especially
in the education sector. Brunei has also received a number
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trading partner, as well as disputant concerning the South
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opportunity, whereas the US provides security cooperation.
Still, Brunei is interested in developing political relations
with the EU, especially in order to diversify its foreign
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Brunei would fare well for the region, which welcomes the
EU’s presence, and would enhance the Union’s role and
visibility. O
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reduction and rural development, with a political dimension
that emphasises democracy, human rights, fundamental
freedoms, rule of law, and good governance. The Paris Peace
Accords of 23 October 1991 opened the door to cooperation
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then the EU has been an integral partner in the country’s
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relationship, including human rights issues.
After a long history of repression, especially under the Khmer
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vibrant emerging Asia. Between 1991 and 2001, the EU
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in addition to approximately €600 million from various EU
member states through cooperation programmes. The EU
and its member states also played an important role in the
rehabilitation and reintegration of around 375,000 former
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Cambodia
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The EU also provided €135 million from 2002–6 for rural
development, social programmes (especially women, urban
youth, child care, and development), trade sector development
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LQ WKH DJURLQGXVWU\ SXEOLF ¿QDQFH PDQDJHPHQW UHIRUP
and the promotion of human rights, democratisation, and
good governance. In 2007–13, the EU provided €76 million
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from the Everything But Arms (EBA) framework, the EU’s
most extensive trade preference system. Although relatively
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having almost quadrupled from €588 million in 2008. The
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the global economy and pushing through governance reforms
at the national and local levels. The EU is the world’s largest
donor of Trade-Related Assistance (TRA) through the multidonor Enhanced Integrated Framework (EIF) for TRA to
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into the world trading system, contributing in particular to
capacity-building measures to meet the obligations under the
World Trade Organisation (WTO).
25
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countries) despite a record low of 0.1 per cent in 2009, and the
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the textile and tourism industries) has been the key driver of
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fastest-growing industry and one of the main pillars of the
country’s economy, grew dramatically from 219,000 tourists
in 1997 to 3.58 million foreign tourists in 2012, generating
$2.2 billion in revenues.
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on governance reform and human rights. Despite the limited
26
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slowly developing. Over the years, the EU has positively
contributed to this incremental progress. The EU has sent
various election observer missions to the country and has
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on capacity-building and democracy consolidation at the
local level. An EU aid package of €10.75 million for the
1998 national elections provided for a new electoral register,
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monitoring unit, and a European observation unit. The EU
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Union to observe local level elections in the country. The EU
also contributed to various polling and training material in
addition to technical assistance and expertise.
Despite the government’s authoritarian style of governance
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building democratic institutions and practises, the emergence
of a strong civil society and a strong opposition party, the
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including corruption, lack of transparency, land-grabbing,
political oppression, and freedom of expression. This makes
the case for greater EU engagement on democracy and good
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of other actors.
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and gas reserves have been recently discovered. While Thai&DPERGLDQ UHODWLRQV FRXOG JHQHUDWH SRWHQWLDO LQVWDELOLW\
especially within ASEAN, trade has grown by almost 60 per
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LQYHVWRU LQ &DPERGLD EHVLGHV EHLQJ D PDMRU DLG GRQRU
DQG D NH\ WUDGLQJ SDUWQHU 7KH &RXQFLO IRU 'HYHORSPHQW
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has played a positive role in the country through the creation
of rural employment, hydropower development projects, and
infrastructure projects (roads, buildings, bridges, etc) that have
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Cambodia
aid has exacerbated the country’s social, environmental, and
political problems, in particular by increasing corruption
levels and deteriorating labour conditions, governance and
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has also used its aid for political reasons, by strong-arming
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foreign ministers’ meeting in July in Phnom Penh, resulting
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issue a joint communiqué.
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both economically and politically. In economic terms, aid and
investment remain crucial. Augmenting trade is important.
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enhance the economy and generate employment, especially in
rural areas. Energy is another area for cooperation and while
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management initiatives, there is space to broaden cooperation
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sources. Politically, the two partners should look for common
grounds to address governance challenges. Failure to resolve
governance issues is a key obstacle to poverty reduction,
growth, and aid effectiveness. The EU should seek to play a
greater role in promoting democracy and fundamental freedoms
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in Asia and the allure of the success of an authoritarian style
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for EU-US cooperation in areas such as governance reform,
development, security, education, and capacity-building.
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should also be explored. O
27
Indonesia
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EU-Indonesia relations date back to 1967 and were formalised unGHUWKH(&$6($1&RRSHUDWLRQ$JUHHPHQW:KLOHFRRSHUDtion takes place mainly under the EU-ASEAN Dialogue umbrella,
the bilateral relationship framework does support a number of political and economic dialogues. An annual ministerial meeting takes
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priorities of the relationship include trade and investment, tourism,
agriculture, environment, as well as research and technical issues.
Indonesia is the EU’s fourth-largest trading partner within
ASEAN and 29th overall with a 0.7 per cent share of the EU’s
total trade. The EU is Indonesia’s fourth-largest trade partner
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cent share of Indonesia’s external trade. In 2012 bilateral merchandise trade stood at €25 billion, while trade in commercial
VHUYLFHV DPRXQWHG WR ¼ ELOOLRQ LQ DFFRXQWLQJ IRU per cent of total trade. EU exports have doubled in the last
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stabilising at around €5.7 billion. The EU’s key imports from
Indonesia include agricultural products (mainly palm oil), fuHOVDQGPLQLQJSURGXFWVWH[WLOHVDQGIXUQLWXUHPHDQZKLOH(8
Indonesia
exports to Indonesia consist largely of machinery and transport
equipment, chemicals and other manufactured goods.
The EU is the second-largest investor in the country. Around 700
European companies have more than €50 billion worth of investments there, contributing to the creation of around half a million
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in Indonesia. EU bilateral aid to the country for the period 2007–13
DPRXQWHGWR¼PLOOLRQ7KHUHZLOOEHQRIXWXUHELODWHUDODLGSURJUDPPHV XQGHU WKH 0XOWLDQQXDO )LQDQFLDO )UDPHZRUN ±
JLYHQWKDW,QGRQHVLDD*PHPEHUZLWKDODUJHHFRQRP\LVFRQVLGHUHGWRKDYHJUDGXDWHGXQGHUWKH$JHQGDIRU&KDQJHSULQFLSOHV1
+RZHYHU LPSOHPHQWDWLRQ RI RQJRLQJ SURJUDPPHV ZLOO FRQWLQXH
XQWLO7KH(8KDVDOVREHHQDFWLYHLQWKH¿HOGRIGLVDVWHUUHsponse (Aceh Multi-Donor Fund and Java Reconstruction Fund). In
WKHDUHDRIKHDOWKWRJHWKHUZLWK*HUPDQ\DQG)UDQFHWKH(8FRQWULEXWHVVXEVWDQWLDOO\WRWKH*OREDO)XQGWR¿JKW$LGV7XEHUFXORVLV
and Malaria – a challenge of particular relevance for Indonesia.
But economic ties remain far below potential. While Indonesia
DFFRXQWVIRUSHUFHQWRI$6($1*'3(8WUDGHZLWK,QGRQHVLD
&
I]Z6\ZcYV[dg8]Vc\Z^hi]ZWajZeg^ci[dg:JYZkZadebZcieda^XnVcYV^Yegd\gVbb^c\aVjcX]ZY
^cDXidWZg'%&&#
LVRQO\DURXQGSHUFHQWRIWRWDO(8WUDGHZLWK$6($16LQJDpore, and not Indonesia, emerges as the EU’s main foreign direct
investment (FDI) partner among ASEAN member countries. The
3&$VLJQHG¿YH\HDUVDJRKDVVWLOOQRWEHHQUDWL¿HG$Q(8,QGRnesia Free Trade Agreement (FTA) could unlock much potential,
but is still in the early stages of scoping. With Indonesia having
JUDGXDWHGRXWRIWKH(8¶V*HQHUDOLVHG6FKHPHRI7UDGH3UHIHUHQFHV *63 LQ -DQXDU\ WKH )7$ FDQ VLJQL¿FDQWO\ ERRVW
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like Indonesia, the lack of a regular bilateral summit meeting affects the EU’s visibility in Jakarta.
Indonesia is a religiously- and ethnically-diverse, democratic country, which embodies the EU’s catchphrase of ‘unity in diversity’.
It is a promoter of closer regional integration within ASEAN and
since 2002, it has been an advocate of democracy within the bloc
DQGWKHZLGHU$VLD3DFL¿F,QGRQHVLDLVDOVRDVXFFHVVIXOPRGHO
of governance that has reconciled Islam, democracy, and development. Bilaterally, the EU and Indonesia have shared interests in
particular in countering terrorism, combating radicalisation, and
¿JKWLQJRWKHUQRQWUDGLWLRQDOVHFXULW\WKUHDWVLQFOXGLQJWUDI¿FNing (drugs, humans), piracy, natural disasters, serious communiFDEOHGLVHDVHVOLNH$YLDQLQÀXHQ]DLOOHJDOLPPLJUDWLRQ¿QDQFLDO
DQGHFRQRPLFVHFXULW\DQGLQIRUPDWLRQVHFXULW\*OREDOO\WKH(8
29
and Indonesia have a shared belief in constructive multilateralism,
global governance, and regional institutions. Indonesia looks to
the EU as a partner in shaping a rules-based world order.
30
Indonesia is strategic to the EU’s interests for a number of reasons. As a global middle power and regional pivot, it belongs to
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the fourth-largest population worldwide, Indonesia is also the
world’s most populous Muslim nation and the third-largest democracy after India and the US. Nearly 250 million people live on
its 17,500 islands. It is the 16th largest economy in the world, and
one of the fastest-growing consumer markets, with a rapidly burgeoning middle class. By 2020, 8-9 million people are expected
WRWUDQVLWLRQWRWKHPLGGOHFODVVHDFK\HDU7KH0F.LQVH\*OREDO
Institute projects the island-nation to become the seventh-largest
ZRUOGHFRQRP\E\DKHDGRIERWK*HUPDQ\DQGWKH8.
Indonesia plays an important role in its sub-region. It is a driving
force within ASEAN and has historically pushed for deeper integration of the bloc. When the group failed to issue a joint communiqué at the foreign ministers meeting in 2012, in the face of presVXUHIURP&KLQDRQWKH&DPERGLDQKRVWSRZHUIXOGLSORPDF\E\
Indonesia helped deliver an accord. Indonesia’s role in integrating
Myanmar in particular has been crucial, by supervising and constantly encouraging Naypitaw to reform its authoritarian system.
Indonesia is a model for democratic governance in the sub-region.
The Bali Democracy Forum is the only ministerial-level meeting
in Asia focused on democracy promotion. It is also an integral part
of the region’s many other politico-security frameworks, most of
which are ASEAN-centred. As ASEAN’s largest economy, IndoQHVLDZLOOEHDPDMRUSOD\HULQWKH$6($1(FRQRPLF&RPPXQLW\
by 2015. Its economy is deeply entangled within the noodle-bowl
of Asian FTAs (with 21 FTAs in total, either proposed, signed
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(TPP) does not include all ASEAN members, Jakarta is boosting
the group’s efforts to create a Free Trade Area of the Asia PaFL¿FWKURXJKWKH5HJLRQDO&RPSUHKHQVLYH(FRQRPLF3DUWQHUVKLS
5&(3LQLWLDWLYH
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too. The country is highly vulnerable to the effects of climate
FKDQJHDQGLWLVVLJQL¿FDQWO\ULFKLQQDWXUDOUHVRXUFHVLWVELRGLYHUVLW\LVVHFRQGRQO\WR%UD]LO¶V,QGRQHVLDQRWRQO\KDVWKHZRUOG¶V
second-largest tropical forest, but it is also the greatest repository
of marine biological resources. Indonesia is the second-largest exSRUWHURIWKHUPDOFRDODQGKDVVLJQL¿FDQWFUXGHRLOQDWXUDOJDV
DQGJHRWKHUPDOUHVRXUFHV+RZHYHULWLVWKHWKLUGODUJHVWHPLWWHU
Indonesia
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and has a highly accelerated deforestation rate.
,QGRQHVLDFDQEHVLQJXODUO\LQÀXHQWLDOLQJOREDODFWLRQDJDLQVWFOLmate change. Jakarta has been a constructive actor in South-East
$VLDZLWKLQWKH*DQGRWKHUIRUDLQSURPRWLQJEHWWHUFOLPDWH
action. The country has unilaterally undertaken an ambitious target of 25 per cent emissions’ reduction by 2025, and has envisDJHG UDLVLQJ LW WR SHU FHQW GHSHQGLQJ RQ LQWHUQDWLRQDO DVVLVtance. There is large scope for the EU to engage constructively
with Indonesia on energy and climate change issues.
,QJHRSROLWLFDOWHUPV,QGRQHVLD¿QGVLWVHOISOD\LQJDGLI¿FXOWEDODQFLQJDFWEHWZHHQJOREDOKHDY\ZHLJKWVVXFKDVWKH86&KLQD
Japan, and India. Indonesia employs a strategy of dynamic equiOLEULXPLQRUGHUWRDYRLGDUHJLRQDOFRQÀLFWRUDSRZHUVKDULQJ
arrangement among major powers. In this sense, the notion of
ASEAN centrality has become a cornerstone in Indonesia’s foreign policy, and Jakarta endeavours to promote ASEAN initiatives
within the region. Indonesia’s role extends well beyond regional
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RI WKH 2UJDQLVDWLRQ RI ,VODPLF &RXQWULHV 2,&7KH FRXQWU\ LV
also an active contributor to UN peacekeeping operations, with
over 1,500 personnel deployed in 2012.
Indonesia’s strategic location in particular makes the country an
important partner on maritime security. Indonesia separates the
,QGLDQDQGWKH3DFL¿F2FHDQVDQGLVKRPHWRFUXFLDOLQWHUQDWLRQDO
FKRNHSRLQWVWKH6WUDLWVRI0DODFFD6XQGDDQG/RPERN0DNDVsar. More than half of global trade passes through Indonesian waters, making the country a key player in maritime transport. While
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it has engaged in promoting a peaceful settlement, in particular
through ASEAN efforts to establish a code of conduct.
31
There is scope to raise the level of EU political engagement with
Indonesia and develop a dynamic foreign and security policy dialogue. An annual summit between the two partners could help upgrade the partnership. There is an urgent need to commence FTA
negotiations to tap into the opportunities that Indonesia presents
and to deepen relatively shallow bilateral investment ties. Among
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VLJQL¿FDQWRSSRUWXQLWLHVZKLOHKHOSLQJ,QGRQHVLDDWWDLQLWVXUEDQ
development goals. O
Lao PDR
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Development cooperation has provided the foundation of the
EU-Lao People’s Democratic Republic (PDR) relationship,
which in recent years has focused on economic liberalisation
and Lao PDR’s integration into the wider world economy.
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PDR joined ASEAN. In 2000, the country acceded to the 1980
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participate in region-to-region cooperation programmes. The
1997 agreement has provided the dialogue and cooperation
structure of the relationship. While development cooperation
has been the mainstay of the partnership, political engagement
and economic exchanges – also thanks to the EU’s Everything
But Arms (EBA) scheme – have been crucial components.
The EU has worked closely with Lao PDR’s government on the
national reform agenda, economic liberalisation, poverty reduction
and in raising the standard of living of the population, as well as on
better integrating the country into the international arena. Today,
Lao PDR is part of the World Trade Organisation (WTO), ASEAN,
the East Asia Summit (EAS), La Francophonie, and the Asia Pacific Trade Agreement, amongst many other frameworks. Lao PDR is
DOVRDFWLYHO\HQJDJHGLQWKH*UHDWHU0HNRQJ6XE5HJLRQLQLWLDWLYH
Lao PDR
$V D ODQGORFNHG GHYHORSLQJ FRXQWU\ /DR 3'5 GHSHQGV ¿UVW
DQG IRUHPRVW RQ LWV QHLJKERXUV 0\DQPDU &KLQD 9LHWQDP
&DPERGLD DQG 7KDLODQG 1RQHWKHOHVV WKH (8 KDV EHHQ DQ
important international partner, especially in terms of poverty
reduction. A third of Lao PDR’s 6.5 million people still live
under the international poverty line. Lao PDR aims to leave
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1993 to 2013, the EU provided approximately €170 million in
development aid. During the same period, Lao PDR also benH¿WHGIURPRWKHU$VLDZLGHSURMHFWV¿QDQFHGE\WKH(8(XURpean development assistance to the country has mainly focused
on, and has made an important contribution to, agriculture and
rural development, trade and economic development, public
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Unexploded Ordnance (UXO) threats, good governance and
human rights, and climate change.
In recent years, the EU has shifted its approach to development
cooperation towards sustained, longer-term budget support,
which underpins closer engagement and policy dialogue with the
government, structural reforms and aid effectiveness. Fifty-eight
per cent of total EU support under the EU’s Strategy Paper for
2007–13 (€69 million) was allocated to the government’s reform
agenda under the national development strategy – the National
Socio-Economic Development Plan (NSEDP) –, helping to
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KXPDQLWDULDQDLGKDVDOVREHHQH[WHQGHGWKURXJK(&+2
DQG LWV GLVDVWHU SUHSDUHGQHVV SURJUDPPH ',3(&+2 ZLWK
¼PLOOLRQLQUHVSRQVHWRQDWXUDOGLVDVWHUVDQG¼PLOOLRQIRU
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response to the malaria outbreak in 2012.
Funding from the EU and its member states makes up a quarter
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and Luxembourg amongst the top EU donors. Japan is the largest
bilateral donor to Lao PDR, providing around $100 million each
\HDU LQ DVVLVWDQFH DQG JUDQWV PDLQO\ WR ¿QDQFH LQIUDVWUXFWXUH
projects in the energy and transport sectors. Japanese ODA
represents nearly half of total bilateral assistance given to the
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accounting for around 15 per cent of total ODA to Lao PDR,
mainly through involvement in major infrastructure projects
including roads and dams. Australia, the Asian Development
Bank (ADB), and the US are other important donors.
33
34
Trade between the EU and Lao PDR is small but not
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/DR3'5EHQH¿WVIURPWKH(8¶V(YHU\WKLQJ%XW$UPV(%$
scheme, which provides duty and quota free access for all
Laotian products except arms and ammunitions. Bilateral
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doubled since 2000. The EU was Lao PDR’s fourth-largest
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with a share of 5.9 per cent of total external trade. Lao PDR’s
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Belgium, and the Netherlands. The EU imports mainly textiles
and clothing and agricultural products from Lao PDR, while
its exports consist largely of machinery goods. In recognition
of the country’s potential, its strategic location in the heart
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business in Lao PDR. In addition to trade preferences, the
EU also provides critical trade-related assistance. The Union
contributes amongst others to a Multi-Donor Trust Fund –
the Trade Development Facility (TDF) – which supports the
government in ongoing reforms, coordinating trade-related
assistance, and facilitating cross-border trade.
Political dialogue between the EU and Lao PDR takes place
through a joint committee, which meets every two years at
VHQLRURI¿FLDOV¶OHYHO7KHUHDUHWZRVXEVLGLDU\ZRUNLQJJURXSV
addressing trade and human rights, respectively. Democracy
promotion is a key priority for the EU in its relations with
Lao PDR and the Union works with a number of international
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espousing Marxism, with the Lao People’s Revolutionary Party
(LPRP) as the only legal political party. While the country’s
constitution safeguards basic human rights, serious violations
by the government and a weak rule of law are important hurdles
towards better political relations between the EU and Lao PDR.
7KH 3UHVLGHQW RI WKH (XURSHDQ &RXQFLO 9DQ 5RPSX\ DQG
(XURSHDQ&RPPLVVLRQ3UHVLGHQW%DUURVRWUDYHOOHGWR9LHQWLDQH
in 2012 for the Ninth ASEM Summit. During the visit, Van
Rompuy met Laotian Prime Minister Thongsing Thammavong
and reiterated the importance the EU attaches to human rights
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another important facet of bilateral relations.
While the relationship with Vietnam is a cornerstone of Lao
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Lao PDR
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country’s opening up to the international community and creating
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an economically successful authoritarian regime. The EU as a
successful democratic entity and an economic powerhouse can
help nurture democracy and strengthen the rule of law. Since
2009, civil society has been gradually emerging in the country,
after a government decree approved the regulation and operation
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welcome steps that the EU must encourage, while not appearing
as hectoring on norms and human rights.
At the same time, there is a need for Lao PDR to diversify its
economic partners and progress on its path towards integration
into the wider global economy. Supporting infrastructure
development and helping Lao PDR to connect better to its
ASEAN neighbours should be a priority. The EU must continue
supporting ongoing economic reforms to help liberalise
further the Laotian economy, strengthen public expenditure
management, improve the banking system and the provision of
UXUDO¿QDQFLDOVHUYLFHVFRQWLQXHWKHUHIRUPRIVPDOODQGPHGLXP
VL]HHQWHUSULVHV60(VDQGHQJDJHLQIXUWKHUFRRSHUDWLRQRQ
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to international engagement and regional integration could also
pave the way to further political reform in the country. O
35
Malaysia
EMILSTEFANOV
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Malaysia is today one of the most vibrant Asian economies and
an important partner for the EU in ASEAN. Decades of industrial
growth and socio-political stability have transformed Malaysia
into an upper-middle income, newly industrialised country with
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ASEAN after Singapore and Brunei. Today, Malaysia is also the
third-largest economy in ASEAN after Indonesia and Thailand and
the 29th worldwide, at purchasing power parity. Malaysia’s population of nearly 29 million is relatively young, with an average age
RI\HDUVDQDYHUDJHOLIHH[SHFWDQF\RI\HDUVDQGD
92.5 per cent literacy rate. Only 1.7 per cent lives below the poverty line (2012) and unemployment stands at 3.2 per cent.
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over the years from a development-oriented to a broad, multifaceted economic and political relationship. In October 2010,
the EU and Malaysia launched negotiations for a bilateral Free
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$JUHHPHQW3&$:KLOHWKHIRUPHUDLPVDWERRVWLQJELODWHUDO
trade and investment, the latter intends to enhance political relations and add a structured framework to overall political and
economic cooperation.
Malaysia
Malaysia is the EU’s second-largest trading partner within
$6($1DIWHU6LQJDSRUHDQGWKHWKJOREDOO\ZLWKDSHU
FHQW VKDUH RI WKH (8¶V WRWDO H[WHUQDO WUDGH &RQYHUVHO\ WKH
(8 LV 0DOD\VLD¶V IRXUWKODUJHVW WUDGLQJ SDUWQHU DIWHU &KLQD
Singapore, and Japan, with a share of 9.5 per cent of Malaysia’s total external trade. Bilateral trade in goods amounted to
almost €35 billion in 2012, with industrial products constituting 90 per cent of two-way trade and Malaysia recording a
trade surplus of nearly €6 billion in the same year. Trade in
services stands at around €5.6 billion (2011) but is gradually
increasing with the establishment of national policies favouring liberalisation. The EU is the largest source of foreign direct investment (FDI) in Malaysia (2012), with €3.8 billion of
LQYHVWPHQWVPDLQO\LQWKHPDQXIDFWXULQJVHFWRUVLJQL¿FDQWO\
ahead of other investors like Japan (€702 million) or Saudi
Arabia (€652 million). EU FDI stock in Malaysia touched
¼ELOOLRQLQULVLQJQHDUO\WLPHVIURP¼ELOOLRQ
LQMXVW¿YH\HDUV&XUUHQWO\WKHUHDUHPRUHWKDQ(XURpean companies operating in Malaysia.
The envisaged FTA is important. An upper-middle income
FRXQWU\DFFRUGLQJWRWKH:RUOG%DQNDVRI-DQXDU\0DOD\VLDLVQRORQJHUHOLJLEOHIRUWKH(8¶V*HQHUDOLVHG6FKHPH
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of up to 66 per cent for Malay exports to the EU. The FTA
FDQ PLWLJDWH WKH VLJQL¿FDQW LPSDFW RI 0DOD\VLD¶V *63 GLVcontinuation and ensure that the EU and Malaysia once again
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Malaysia is one of the most open economies in the world.
As a member of the World Trade Organisation (WTO), it is
an active proponent of free trade and the multilateral trading
V\VWHP,WLVDOVRDPHPEHURIWKH&DLUQV*URXSZKLFKDGvocates for greater liberalisation in global agriculture trade,
DQGLVWKHZRUOG¶VODUJHVW,VODPLFEDQNLQJDQG¿QDQFHFHQWUH
Once a leading producer and exporter of primary products
like rubber and tin, Malaysia has successfully managed to
diversify its economy. With an average growth of 6.5 per cent
from 1957-2005, the country is today one of the world’s largest producers of electronics. It is the world’s second-largest
exporter of palm oil and a regional leader in rubber, tin, oil,
and gas exports. Malaysia’s industrialised market economy
is guided by sound macro-economic policies like the Vision
2020, which aims to attain developed-economy status for the
country by 2020. The initiative targets an eight-fold increase
37
RIUHDO*'3EHWZHHQDQGDQGDIRXUIROGLQFUHDVH
in per capita income. This requires the government to maintain a 7 per cent average annual growth.
38
+RZHYHU WKH )7$ DOVR PDWWHUV IRU WKH (8 0DOD\VLD KDV DOready concluded and implemented bilateral FTAs with major
regional partners like Australia, India, Japan, and New ZeaODQGDVZHOODV&KLOHDQG3DNLVWDQ,QDGGLWLRQLWEHQH¿WVIURP
$6($1¶V)7$VZLWK$XVWUDOLD&KLQD,QGLD-DSDQ6RXWK.Rrea, and New Zealand. Malaysia is also a negotiating partner
RI ERWK WKH 5HJLRQDO &RPSUHKHQVLYH (FRQRPLF 3DUWQHUVKLS
5&(3DQGWKH7UDQV3DFL¿F3DUWQHUVKLS733PDMRUSOXUL
ODWHUDO)7$LQLWLDWLYHVLQWKH$VLD3DFL¿F$VSHHG\FRQFOXVLRQ
of the EU-Malaysia FTA would open the door for more EU
companies to enter one of the most vibrant and well-connected
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have so far lacked momentum. Key contentious issues include
intellectual property rights (especially generic medicines),
competition (Malaysian competition laws focus on anti-trust
while EU competition laws also cover state-aid and mergers
and acquisitions), automobiles, public procurement, and the
palm oil sector. The latter is particularly sensitive since Malaysia is the world’s second-largest exporter of palm oil and the
(8WKHVHFRQGODUJHVWLPSRUWHU+RZHYHU0DOD\VLDQSDOPRLO
bio-fuel has been deemed not to meet the EU’s sustainability
FULWHULD0DOD\VLDQ1*2VDQGFLYLOVRFLHW\WRRKDYHRSSRVHG
an increase in palm-oil exports in the interest of the environment and indigenous land rights, while the government looks
to raise production to increase export revenues. Malaysia is
also uneasy with EU demands to change national laws especially as regards intellectual property and geographical indications under which the EU has 3,000 protected products.
At the political level, the EU and Malaysia meet within the
IUDPHZRUNRIDQDQQXDOVHQLRURI¿FLDOV¶PHHWLQJDVZHOODV
DPHPEHU,QWHU3DUOLDPHQWDU\0DOD\VLD(8&DXFXV(GXcation and research, security, infrastructure, environment,
climate change, and communication technology are among
the priorities of the partnership. EU-Malaysia ‘green’ coopHUDWLRQLVVLJQL¿FDQWO\ZLGHVFRSHGDQGWDNHVSODFHXQGHUWKH
IUDPHZRUNRID*UHHQ7HFKQRORJ\DQG&OLPDWH&KDQJH3ROicy Dialogue. The EU also supports a number of projects on
sustainable development and forestry and has provided development aid to Malaysia for around €17 million (2007–13)
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XQGHU WKH (XURSHDQ ,QVWUXPHQW IRU 'HPRFUDF\ DQG +XPDQ
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directed towards civil society and support for human rights.
Malaysia
Malaysia sees itself as a bridge between the EU and ASEAN.
+RZHYHULWIHHOVWKDWLQVSLWHRIORQJVWDQGLQJUHODWLRQVWKH
EU has still not fully acknowledged the importance of its
partnership with ASEAN even as the regional body has an
expanding list of 10 key dialogue partners including AustraOLD&DQDGD&KLQD,QGLD-DSDQ1HZ=HDODQG6RXWK.RUHD
Russia, the UN, and the US. Bilaterally, Malaysia feels that
the donor-recipient paradigm remains prevalent in the relationship with the EU and that an upgrade is in order, not least
given the growing importance attached by the EU to relations
ZLWK&KLQDvis-à-vis other Asian partners. The EU’s emphasis
on democracy and other values-based clauses in bilateral negotiations is also questioned in Kuala Lumpur.
The EU and Malaysia share similar security interests and are
also gradually establishing cooperation on maritime security and
&%51LVVXHV*LYHQWKHIUHTXHQF\RIQDWXUDOGLVDVWHUVLQ0DOD\sia, disaster preparedness is a key area for cooperation. Malaysia
LVSDUW\WRWKH6RXWK&KLQD6HDWHUULWRULDOGLVSXWHDQGVHHNVSRlitical support from the EU on calling for a peaceful resolution
based on the rule of law and the ASEAN-proposed regional code
RIFRQGXFW:KLOHWKH(80DOD\VLDUHODWLRQVKLSKDVPDGHVLJQL¿cant progress on commercial and economic issues, there is scope
to foster political cooperation between the two parties. O
39
EGUIDE TRAVEL
/ FLICKR
Myanmar
The EU-Myanmar relationship stands out as a prime example
of the EU’s political engagement in Asia. It has also become
an important dimension of the EU’s relationship with ASEAN.
For over two decades, the EU applied incremental, targeted
sanctions against Myanmar’s authoritarian regime. With likeminded partners, the EU (and the US) led international efforts
to isolate the country so as to pressure the regime and induce
change. This policy represents one of its most elaborate and
coordinated attempts at democracy promotion in a third country.
On top of an arms embargo, trade measures, targeted travel bans
DQGDVVHWIUHH]HVWKH(8DQGLWVPHPEHUVWDWHVH[WHQGHGVXSSRUW
to the local civil society and expatriate community. EU and
various member state leaders also raised on several occasions
the issue of Myanmar in bilateral dialogues and summits with
most of the country’s neighbours and with ASEAN. The weight
of the EU was felt most strongly within international bodies like
the UN and its agencies, where international aid to Myanmar
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development assistance as low as $6 per capita in comparison
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3'5 +RZHYHU WKH (8 GRYHWDLOHG LWV SROLFLHV ZLWK OLPLWHG
humanitarian aid and development assistance in key selected
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Myanmar
Stalemate between Brussels and Nyapidaw limited cooperation
between the EU and ASEAN between 1997 and 2010. A number
of important meetings were boycotted. EU-ASEAN foreign
ministers’ meetings did not take place for many years, while
ASEAN refused to attend the 2005 ASEM Economic Ministers’
Meeting in Rotterdam because the Netherlands had refused to
SURYLGHYLVDVWR0\DQPDURI¿FLDOV,QWKH(8FRQVLGHUHG
lack of democratic progress in Myanmar as a prime reason
to abandon region-to-region Free Trade Agreement (FTA)
negotiations with ASEAN, which had began in 2007.
While not negligible, pressure from the EU, the US and others
has not been the decisive factor triggering the recent political
transition in the country. More important has been the sustained
policy of engagement pursued by ASEAN and other regional
SDUWQHUVVKRZLQJ0\DQPDU¶VOHDGHUVKLSWKHEHQH¿WVRIHFRQRPLF
and political reform, and the initiative of Myanmar’s President
Thein Sein. After the unprecedented and rapid political changes
WKDWWRRNSODFHLQHQGLQJ\HDUVRIUHSUHVVLYHPLOLWDU\UXOH
Myanmar rose dramatically onto the international agenda. The
military junta was dissolved with the establishment of a nominally
FLYLOLDQJRYHUQPHQWIROORZLQJWKHJHQHUDOHOHFWLRQVDQHZ
FRQVWLWXWLRQZDVDSSURYHGE\UHIHUHQGXPLQWHUQDWLRQDOGHPRFUDF\
icon Aung San Suu Kyi was released from house arrest after two
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WR UHJLVWHU DV D SROLWLFDO SDUW\ KXQGUHGV RI SROLWLFDO SULVRQHUV
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government set out to build peace with rebels and armed ethnic
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rate system, revision of national banking laws, improvements
WR WKH SD\PHQW V\VWHP SURPRWLRQ RI ¿QDQFLDO VHFWRU FDSDFLW\
EXLOGLQJDQGXSJUDGHVWRWKHQDWLRQDOEXGJHWDQG¿VFDOV\VWHP
amongst others. The pace of reform and political opening stunned
the world and the EU, which, like most Western nations, observed
with cautious optimism.
Acknowledging the top-down political revolution in the making,
the EU suspended sanctions in April 2012, with the exception of
WKHDUPVHPEDUJRZKLFKLWZLOOPDLQWDLQXQWLO$SULODQG
in July of 2013 it reinstated Myanmar within the Everything But
Arms (EBA) scheme. All this followed the 2012 by-elections
(to which the EU sent an observer mission) that saw Aung San
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41
It is now essential for the EU to follow a medium- to longterm comprehensive strategy of engagement and accompany
the country’s rehabilitation into the 21st century. The EU is an
important player in Myanmar. Its humanitarian aid has been
EHQH¿FLDO¼PLOOLRQVLQFHDQGWKH8QLRQLVWKHODUJHVW
donor to peace-related projects in the country. For example,
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DQG LV KHOSLQJ WKH JRYHUQPHQW HVWDEOLVK D 1DWLRQDO &ULVLV
5HVSRQVH&HQWUH7KURXJKRXWWKH\HDUVRIUHSUHVVLYHUXOHE\WKH
military junta, European governments’ main focus had been on
democratisation, human rights, peace and national reconciliation,
as well as inter-communal relations.
and towards the Rohingya Muslim community. EU diplomats
are keen on EU support to ethnic peace efforts (a fraction of the
Union’s 2012–13 aid package is budgeted for peace processes),
but ethnic and communal peace processes can ultimately be
only internally-led and based on the political will of the parties
involved – the leadership, the rebels, and religious groups. The
vast body of political and economic reforms that the country will
need to implement will require technical expertise from partners
like the EU. Through its Instrument for Stability (IfS), the EU is
currently supporting police reform in Myanmar with a €10 million
package in the areas of crowd management and community
policing. The EU’s offer of a €200 million development aid
package (mainly to the health, education, and refugee sectors)
needs to be seen as part of a broader engagement. At the end
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the EU in Asia), with the participation of 100 entrepreneurs and
representatives of business associations, political, development
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was set up as a forum for debate on Myanmar’s challenges and
opportunities as well as the EU’s contribution.
The EU does well in pressuring the country to solve communal
and ethnic violence, especially in the Rakhine and Kachin states
Recent developments in the country beseech complementing
support to political reforms with stronger economic engagement.
since reached out intensively to Myanmar. The surge of visits
RIKLJKOHYHORI¿FLDOVIURPERWKWKH(8LQFOXGLQJYDULRXV(8
commissioners) and member states has been impressive. During
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2012, the EU Delegation was inaugurated in Yangon while the
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42
Myanmar
The EU can bring real added value to the outpouring of
international assistance to the country by engaging in areas like
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FRQVWLWXWLRQDOUHIRUPDQGIRUWKH¿QDQFLDODQGEDQNLQJVHFWRUV
IDFLOLWDWLQJ WHFKQRORJ\ WUDQVIHU VXSSRUWLQJ 0\DQPDU LQ LWV
LQWHUQDWLRQDOFRPPLWPHQWVOLNHLWV&KDLUPDQVKLSRI$6($1DQG
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FDSDFLW\ WDUJHWLQJ WKH HQKDQFHPHQW RI (80\DQPDU WUDGH
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boosting people-to-people contacts. The country’s infrastructure
too needs a massive overhaul, as only a quarter of the population
has access to electricity. The banking sector is another area
for collaboration since improvement of access to credit is a
key priority for the government. During 2000–10, Myanmar’s
economy grew at an annual average of 12 per cent. According to
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by 2030, provided that the political and business environment
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country deeply affected by corruption. Myanmar ranked 157th
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Index in 2012. Other initiatives might include a judicial training
programme and supporting the reintegration of the half millionstrong Tatmadaw (the armed forces), with a special focus on
child soldiers. Engaging on non-traditional security, especially
curbing the drugs trade, is crucial. Myanmar is the secondlargest global producer of opium and an important source of
illegal drugs, in particular amphetamines.
In short, bilateral EU-Myanmar relations need to focus on the
institutionalisation of political and economic reforms, bilateral
trade and investment, and rapid urbanisation. Weaving normative
end-goals into practical economic and political collaboration, as
well as technical assistance, will help strengthen Myanmar’s
civil society and the institutional capacity of a government
that is just now learning how to manage and distribute national
public goods. A foreign investment law that ensures a stable and
predictable environment for external investors has been passed
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overhauled. For Myanmar, engaging with the West represents a
VWUDWHJLFJDWHZD\WREDODQFHPRXQWLQJSUHVVXUHVIURP&KLQDDQG
India, as well as a fast-track to development to catch up with the
rest of Asia. O
43
Philippines
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bilateral relations. The relationship was initially developmentRULHQWHG WKH 3KLOLSSLQHV(& )UDPHZRUN $JUHHPHQW
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the Philippines is not only experiencing greater economic
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of EU-Philippines relations is set to change.
Bilaterally, the EU and the Philippines meet in the framework of a
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which takes stock of the entire spectrum of bilateral relations (and
ASEAN issues). The absence of an institutionalised ministerial
meeting is being increasingly felt as relations have expanded. In
WKH3KLOLSSLQHV¶IRUHLJQPLQLVWHUDQG(8+LJK5HSUHVHQWDWLYH &DWKHULQH$VKWRQ PHW RI¿FLDOO\ IRU WKH ¿UVW WLPH7KH WZR
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11 July 2012 in Phnom Penh on the sidelines of the ASEAN Regional Forum (ARF), which will provide a better architecture to
bilateral relations, increase dialogue and set a more regular timeWDEOHIRUPHHWLQJV7KH3&$DOVREULQJVDERXWQHZLQVWLWXWLRQDO
mechanisms, including a joint consultative committee.
Philippines
The EU has been an important partner in the Philippines’
development efforts, working closely on poverty reduction, the
health sector, good governance, and democracy. Since relations
began, the EU has contributed more than €1 billion in grants to
projects assisting poverty reduction and raising living standards,
while the European Investment Bank has provided an additional
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highlighted four key areas for cooperation, namely improvement
in the delivery of and access to basic social services, particularly
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and security in Mindanao. As regards the country’s Development
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million in grant funding in particular to support the Filipino
8QLYHUVDO+HDOWK&DUHSROLF\ZKLFKH[WHQGVIUHHKHDOWKFDUHWR
the poorest segments of society.
The EU has also been instrumental in reinforcing democracy
and good governance in the Philippines, by assisting the
improvement of the legislative system, as well as progress on
the accountability and transparency of political activity. The
(8IXQGHGSURMHFWVVXFKDVWKHµ+HDOLQJ'HPRFUDF\¶LQLWLDWLYH
which helped prevent further inter-clan clashes in Mindanao
Island in the aftermath of the 2009 clashes and the subsequent
declaration of a state of emergency, and supported the monitoring
of the May 2010 elections. The EU-Philippines Justice Support
Programme promoted judicial reforms, including better access to
the justice system for the poor, and speeding up the trial of extrajudicial killings and enforced disappearance cases. A number
RI RWKHU SULRULW\ SURJUDPPHV VXSSRUW WKH *RRG *RYHUQDQFH
Agenda of President Aquino, trade integration, and employment
programmes. The EU’s engagement with Filipino civil society
has addressed a wide spectrum of issues, ranging from social
questions, the environment, human rights, migration, and the
rights of indigenous people.
The EU’s role in supporting the peace process and the development
of local communities in Mindanao has been noteworthy in that
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component of the International Monitoring Team (headed by
Malaysia and involving Brunei, Indonesia, Japan, Norway, and
the EU), distributing more than €150 million since the 1990s.
Mindanao, the agricultural basin of the Filipino archipelago and
its second-largest island, was affected by separatist movements
led by the Moro Islamic Liberation Front (MILF) riding on
45
VLJQL¿FDQW HFRQRPLF GLVSDULWLHV DQG UHOLJLRXV GLIIHUHQFHV
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more than 100,000 deaths while nearly half a million were
displaced. In 2013, the government agreed to a wealth sharing
deal with the MILF.
46
The EU is also one of the most important sources of humanitarian
and emergency aid to the Philippines. EU support has covered
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preparedness. In 2011 alone, 19 large tropical storms hit the
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EU responded with around €20 million in humanitarian aid and
reconstruction assistance, in addition to €25 million from EU
PHPEHU VWDWHV 6LQFH (&+2 KDV GLVWULEXWHG RYHU ¼
million to the Philippines to cope with natural disasters and €21
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projects to build resilience within local communities. The EU
has been particularly active in Mindanao, where it has provided
more than €35 million in humanitarian aid for natural and manmade disasters to assist victims.
Trade is an important component of the EU-Philippines
relationship. Bilateral trade slowed down following the crisis in
2008 but has picked up since, standing at nearly €10 billion in
2012 (goods), while trade in services was €2.1 billion in 2011.
7KH3KLOLSSLQHVLVWKH(8¶VWKODUJHVWWUDGLQJSDUWQHULQWKH
world, with a 0.3 per cent share of the EU’s total external trade,
and the sixth-largest trading partner for the EU in ASEAN.
&RQYHUVHO\ WKH 8QLRQ LV WKH FRXQWU\¶V IRXUWKODUJHVW WUDGLQJ
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of the Filipino external trade. In December 2013, the Philippines
DSSOLHG WR WKH (8¶V QHZ UHLQIRUFHG *HQHUDOLVHG 6FKHPH RI
3UHIHUHQFHV *63 3OXV1 This could increase Filipino exports
to the EU by €611 million. At the same time, both partners
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Manila would also like to increase trade with the EU on offshore
services. The EU is the largest investor in the Philippines. In
2011, the EU’s foreign direct investment (FDI) stock stood at
€7.6 billion (28 per cent of total FDI stock in the Philippines).
Total Philippine FDI stock in the EU stands at around €1.7 billion
(2010). The EU is also the second-largest source of remittances
for the Philippines – €2 billion in 2012.
&
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igVYZ^cXZci^kZhidYZkZade^c\Xdjcig^ZhVagZVYnWZcZÃii^c\[gdb<HEid^beaZbZciXdgZ^ciZgcVi^dcVaXdckZci^dchdc]jbVcVcYaVWdjgg^\]ih!hjhiV^cVWaZYZkZadebZciVcY\ddY\dkZgcVcXZ#
Philippines
Three key priority areas stand out for the EU-Philippines
UHODWLRQVKLSQDPHO\HQJDJHPHQWLQWKH6RXWK(DVW$VLDQUHJLRQ
development, and disaster relief including climate change. EUPhilippines cooperation extends to traditional and non-traditional
security issues, climate change, maritime issues, human rights
and other political dossiers on top of EU support for democracy
and good governance. The EU and the Philippines consult closely
on counter-terrorism, especially regarding terrorist groups in the
VRXWKRIWKHFRXQWU\WUDI¿FNLQJKXPDQVGUXJVDQGZHDSRQV
DQG &KHPLFDO %LRORJLFDO 5DGLRORJLFDO DQG 1XFOHDU &%51
LVVXHV 7KH (8 KDV UHFHQWO\ HVWDEOLVKHG D &%51 &HQWUH RI
Excellence South-East Asia Regional Secretariat in Malacañang,
in the Philippines, to boost the capacity of countries in the region
to respond to threats and help build a common risk mitigation
policy at the national and regional levels.
In the past few years, the Philippines has been drawn to the centre
of the Asian political landscape given frequent skirmishes with
&KLQDLQWKH6RXWK&KLQD6HDHVSHFLDOO\RYHUWKH6SUDWO\,VODQGV
and its increased engagement with the US. The US and the
Philippines have a mutual defence treaty, signed in 1951 and which
was renewed during a landmark visit by former US Secretary of
6WDWH+LOODU\&OLQWRQLQ1RYHPEHU7KH86LVDOVRERRVWLQJ
its military assistance to the Philippines with $50 million in aid
and more navy vessels, and by helping the country modernise its
military. An agreement between both sides is envisaged which
would provide a framework for semi-permanent ‘rotational’
stationing of US troops and military assets in the country.
Recently, the Philippines has initiated arbitral proceedings in
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1DWLRQV&RQYHQWLRQRQWKH/DZRIWKH6HDWRWKHGLVSXWHGDUHDV
RI WKH 6RXWK &KLQD 6HD:HVW 3KLOLSSLQH 6HD *UHDWHU SROLWLFDO
engagement with countries in the region, especially disputant
states, will be important. The Philippines seeks EU support to
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to persuade all claimant states to respect the rule of law and to
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of the EU. While the EU and the Philippines have developed a
strong relationship since the country’s independence, the golden
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with an opportunity to strengthen their political engagement. O
47
Singapore
MARTIN ABEGGLEN
/ FLICKR
$V D JOREDO ¿QDQFLDO DQG EXVLQHVV KXE WKH PLFUR LVODQG
nation of Singapore has developed into a virtual springboard
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successfully weathered the global meltdown, the country
today stands in good stead as a stable economy that encourages
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country with the largest number of Free Trade Agreements
(FTAs) (either proposed, under negotiations, or signed) in
Asia, Singapore champions the notion of free trade and free
markets.
Beyond economic stability and trade, Singapore punches
well above its weight in international politics. ASEAN is a
cornerstone of its foreign policy and Singapore is very much
involved in most of Asia’s regional frameworks. The Asia3DFL¿F (FRQRPLF &RRSHUDWLRQ $3(& 6HFUHWDULDW LV EDVHG
in Singapore and the country hosts the annual ShangriLa Dialogue, a leading security conference. In addition,
Singapore is a member and active participant in a series of
international fora. In 2007–13, it contributed personnel to
the NATO International Security Assistance Force (ISAF)
in Afghanistan and it holds an observer status in the Arctic
&RXQFLO 7KH FRXQWU\ SXUVXHV D SROLF\ RI FRQVWUXFWLYH
Singapore
engagement with all states and institutions. Its foreign policy
LV DFXWHO\ SUDJPDWLF DQG ZKLOH LW PD\ HQJDJH &KLQD RQ
economic, political and cultural grounds, it hedges it all the
same by allowing the US military to use its Sembawang and
Paya Lebar bases.
EU-Singapore relations are largely well-functioning and
EHUHIW RI PDMRU FRQWURYHUVLHV 7KH\ ¿QG WKHLU OHJDO EDVLV
LQ WKH (&$6($1 &RRSHUDWLRQ $JUHHPHQW 7UDGH
and investment have been the overarching dimension of
bilateral relations and the economic compact has developed
satisfactorily. Bilateral merchandise trade stood at €51.8
billion in 2012, registering a 12 per cent growth from the
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despite the economic slowdown in Europe. Singapore is the
(8¶VWKODUJHVWWUDGLQJSDUWQHUEHDULQJDSHUFHQWVKDUH
of the EU’s total external trade. Meanwhile, the EU ranked as
Singapore’s second-largest trading partner behind Malaysia
DQGFXWDSHUFHQWVKDUHRIWKHFRXQWU\¶VH[WHUQDOWUDGH
SLH+RZHYHU6LQJDSRUHLVWKH(8¶VVHYHQWKODUJHVWWUDGLQJ
partner in commercial services worldwide. Trade in services
stood at €27.6 billion in 2011, around half of the merchandise
trade for that year, and includes principally transport services,
business and management services, and royalties. Singapore
is the EU’s top trading partner within ASEAN, accounting
for a third of total EU-ASEAN trade in goods and half of
(8$6($1WUDGHLQVHUYLFHV,WLVDOVRWKH(8¶V¿IWKODUJHVW
trading partner in Asia after four of the Union’s so-called
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Investment too is a key component of the EU-Singapore
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Forecast Report ranks the city-nation ‘as the most attractive
investment location both regionally and globally’. Total EUSingapore bilateral foreign direct investment (FDI) stock
is around €190 billion. The EU is the largest investor in
Singapore, with 27.3 per cent of total FDI stock, compared to
10.6 per cent for the US and 8.7 per cent for Japan. Singapore
LV WKH ¿IWKODUJHVW LQYHVWRU LQ WKH (8 VHFRQG ODUJHVW IURP
Asia behind Japan, and the largest from ASEAN. Singapore
DOVRDFFRXQWVIRUWKHYDVWPDMRULW\RI)',LQÀRZVLQWRWKH(8
from the region – €11 billion in 2011 out of an ASEAN total
of €12 billion.
The ease of doing business with Singapore is apparent from
the more than 9,000 European companies present in the
49
50
country. The World Bank’s 2012 Doing Business Report
deems Singapore to have the most favourable regulatory
and institutional environment in the world for conducting
EXVLQHVV&RUUXSWLRQOHYHOVLQWKHFRXQWU\DUHYHU\ORZWKH
,0'&RPSHWLWLYHQHVV,QGH[<HDUERRNUDQNV6LQJDSRUH
as the least corrupt country in Asia. The same report rated
the country as number one in Asia and seventh worldwide in
terms of intellectual property rights protection. In addition,
Singapore boasts of high labour protection and businessconducive labour regulations.
6LQJDSRUH ZDV WKH ¿UVW $6($1 PHPEHU FRXQWU\ WR EHJLQ
bilateral FTA talks with the EU when the Union decided to
discontinue ASEAN-EU region-to-region FTA negotiations.
The EU and Singapore signed a comprehensive FTA on 20
September 2013 after negotiations were launched in March
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ZRXOG VLJQL¿FDQWO\ ERRVW ELODWHUDO WUDGH DGGLQJ QHDUO\
€1.5 billion to EU exports to Singapore and €3.5 billion to
Singapore’s exports to the EU in the next decade). This FTA
has set the level of ambition for EU free trade negotiations
with other ASEAN member countries and the eventual regionWRUHJLRQ)7$7KH(86LQJDSRUH)7$LVDOVRWKH¿UVWLQVWDQFH
that Singapore has recognised geographical indications,1 a
controversial issue with the EU’s other negotiating partners.
Beyond commercial ties, the EU and Singapore share a growing
political relationship. On 31 May 2013, both sides concluded
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energy, transport, services, science and technology, trade, and
people-to-people contacts. Bilateral visits have recently picked
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in May 2013, when she attended the Shangri-La Dialogue and
met Foreign Minister K. Shanmugam. Shanmugam in turn
visited Brussels in September 2013.
While relations have progressed smoothly, the few hurdles
in bilateral relations relate mainly to human rights issues, in
particular the employment of capital punishment in Singapore,
PHGLDIUHHGRPDQGJD\ULJKWV6LQJDSRUHUDQNHGth in the
2013 Reporters without Borders’ World Press Freedom Report.
&
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Singapore
EU-Singapore relations hold much promise not least when
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Singapore’s geostrategic location in the midst of the Straits of
Malacca, dialogue on maritime security and safety, as well as
navigation, can take a more prominent place in bilateral talks.
The changing geopolitics of the East Asian region, in particular
WKH86UHEDODQFHWRZDUGV$VLDDQGWKHULVHRI&KLQDEHFNRQVD
greater collaboration between the EU and like-minded partners
such as Singapore.
The EU and Singapore also share the same concerns about the
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urban technologies as well as renewable energies could become
one of the key facets of an innovation partnership between
the two parties. The EU and Singapore have a long-standing
cooperation in research and innovation, which could be further
developed. Finally, as actors in international development, the
EU and Singapore could explore a development partnership
focusing on ASEAN’s least developed countries. O
51
Thailand
DAVID BERKOWITZ
/ FLICKR
Thailand is the only South-East Asian country to have
escaped colonisation. EU-Thai relations are relatively recent
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(&$6($1 &RRSHUDWLRQ $JUHHPHQW %LODWHUDO WLHV
have grown progressively despite frequent roadblocks due
to political instability and military coups in Thailand. The
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$JUHHPHQW 3&$ VLJQHG RQ )HEUXDU\ RIIHUV D
stronger framework for political and economic relations and
a platform to adapt better the partnership to current global
challenges and shared political ambitions.
Labelled by the World Bank as ‘one of the great development
success stories’, Thailand is an export-oriented newly
industrialised country. It is ASEAN’s second-largest economy
after Indonesia and the fourth-richest country after Singapore,
Brunei, and Malaysia. Thailand ranks second after Singapore in
terms of external trade volume and foreign reserves. It recorded
the world’s highest growth rate from 1985 to 1996, averaging
SHUFHQWDQQXDOO\EHIRUHWKHFROODSVHRIWKH7KDLFXUUHQF\
WULJJHUHG WKH $VLDQ ¿QDQFLDO FULVLV $IWHU \HDUV RI SROLWLFDO
instability and the destabilising effects of the 2008 international
¿QDQFLDODQG(XURSHDQGHEWFULVHVWKH7KDLHFRQRP\JUHZ
Thailand
per cent in 2013. Nonetheless, Thailand’s unemployment rate
RI MXVW SHU FHQW ¿UVW TXDUWHU LV WKH IRXUWK ORZHVW
JOREDOO\DIWHU&DPERGLD0RQDFRDQG4DWDU7KDLODQGDOVR
has an impressive record in terms of poverty reduction, with
more than 50 per cent Thais having crossed above the poverty
line in just two decades.
The EU-Thailand partnership is well-developed across political,
economic, environmental, development, and socio-cultural
issues. Trade is an important component of bilateral relations.
Thailand is a trading nation with exports accounting for more
WKDQWZRWKLUGVRILWV*'3,WLVWKHZRUOG¶VODUJHVWSURGXFHUDQG
exporter of hard disk drives and rubber, the largest rice exporter
and second largest of sugar. Thailand is the EU’s third-largest
trading partner in ASEAN after Singapore and Malaysia. In
2012, bilateral merchandise trade amounted to €32.3 billion,
ZKLOHVHUYLFHVWUDGH¿JXUHVIRUDPRXQWHGWR¼ELOOLRQ
ZLWKDGH¿FLWIRUWKH(87KH8QLRQLV7KDLODQG¶VWKLUGODUJHVW
WUDGLQJSDUWQHUDIWHU-DSDQDQG&KLQDZLWKDQSHUFHQWVKDUH
of Thailand’s total external trade. Thailand is the EU’s 25th
largest trading partner, with a 0.9 per cent share of the EU’s
H[WHUQDOWUDGHSLH$VRI-DQXDU\7KDLODQGORVWSUHIHUHQWLDO
DFFHVVWRWKH(8¶VPDUNHWXQGHUWKH(8¶V*HQHUDOLVHG6FKHPH
RI3UHIHUHQFHV*63IRUDQXPEHURIH[SRUWV7KHVHLQFOXGH
PHDW¿VKSHDUOVDQGSUHFLRXVPHWDOVDQGSUHSDUHGIRRGVWXIIV
*LYHQ 7KDLODQG¶V JURZLQJ OHYHO RI *'3 SHU FDSLWD DV RI
January 2015 the EU will rescind preferential access to Thai
exports and will subject Thai shipments to the EU to most
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7KDLODQGLVH[SHFWHGWREHVLJQL¿FDQW
Thailand is also an important destination for EU investments,
with European foreign direct investment (FDI) stocks worth
¼ELOOLRQ7KH(8LVWKHWKLUGODUJHVWVWRFNLQYHVWRU
in Thailand, after Japan and the US. In March 2013, the EU
and Thailand started negotiations on an Free Trade Agreement
(FTA), the fourth round of which is scheduled to take place in
0DUFKLQ%DQJNRN7KH)7$H[SHFWHGWREHFRPSOHWHG
within an 18-month provisional deadline, could offset the
negative effects of the EU’s withdrawal of Thailand from the
*63VFKHPH7KH)7$KDVQRQHWKHOHVVEHHQPHWZLWKVWURQJ
UHVHUYDWLRQV IURP 7KDL 1*2V ZKLFK DUH FRQFHUQHG DERXW
the inclusion of alcohol products, intellectual property issues
(especially generic drugs), and human rights. Thailand has
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distributes cheap treatment drugs. Other contentious issues
53
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procurement, competition, and geographical indications), and
sustainable development.
54
Thailand seeks technology transfers from the EU, which it
sees as crucial for its growing and modernising economy and
greater workers’ mobility. EU investments are important too,
especially in support of urbanisation plans. Thailand looks for
technical capacity-building from the EU and a partnership on
knowledge transfer. The EU is seeking better protection for
its investments. An FTA with Thailand is important for the
EU given the increased competition EU companies face from
their Asian and American rivals. With Thailand very engaged
in the global free trade race (26 FTAs proposed, ongoing or
concluded), trade liberalisation would be an important step for
EU commercial interests.
The political component of the EU-Thailand relationship has
been punctuated by controversies given frequent political
upheavals in Thailand. The EU suspended diplomatic relations
with the country following the 2006 coup, resuming full
diplomatic ties with the government in 2008. The country
however remains bitterly divided between opposing political
camps. Amidst the ongoing (at the time of writing) debilitating
political stalemate and violent protests within the country, the
EU has been urging dialogue and a democratic resolution to
the crisis.
On the institutional level, the EU and Thailand have a regular,
DOEHLW QRW DQQXDO VHQLRU RI¿FLDOV¶ PHHWLQJ ZKLFK LV WKH
KLJKHVW OHYHO RI SROLWLFDO GLDORJXH 7KH (87KDLODQG 3&$
ZLOO VLJQL¿FDQWO\ LQFUHDVH WKH QXPEHU RI ELODWHUDO GLDORJXHV
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Ashton visited Thailand in 2012, while Thai Prime Minister
Yingluck Shinawatra visited Brussels in 2013. Beyond
economic issues, bilateral priorities include capacity-building
in the security sector, and global threats and challenges.
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although EU humanitarian aid has proved at times crucial
LQ UHVSRQVH WR WKH UHJXODU ÀRRGV W\SKRRQV DQG RWKHU QDWXUDO
GLVDVWHUV WKDW KLW WKH FRXQWU\ )ROORZLQJ WKH ÀRRGV (8
UHOLHI PHDVXUHV WR 7KDLODQG WKURXJK (&+2 ZHUH WR WKH WXQH
RI ¼ PLOOLRQ %HVLGHV (&+2 KDV EHHQ SURYLGLQJ DVVLVWDQFH
to Burmese refugees in Thailand since 1995, funding mainly
food aid, health care and the provision of clean water and
sanitation. There is a wide scope to increase cooperation in the
Thailand
KHDOWKVHFWRUQRWDEO\LQWKH¿JKWDJDLQVW+,9DQGPDODULD7KH
EU and Thailand can successfully expand their partnership in
GLVDVWHUUHVLOLHQFHDQGUHVSRQVHFRXQWHUWUDI¿FNLQJKXPDQV
weapons, and drugs), security sector reform, deforestation,
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Thailand seeks greater engagement from the EU bilaterally,
with ASEAN and in the region. Thailand’s relationships
with its neighbours, especially Myanmar, Lao PDR and
&DPERGLDRIIHUDQLPSRUWDQWJDWHZD\IRUHQKDQFHGGLDORJXH
and cooperation with the EU. Thailand is also amongst the
top investors in these countries and in Vietnam. Dialogue on
investment and market connectivity within this sub-group
can be pursued and prioritised especially with a view to the
REMHFWLYHRIVHWWLQJXSWKH$6($1&RPPXQLW\E\7KH
EU has not been diplomatically involved on issues such as the
7KDL&DPERGLDQWHUULWRULDOGLVSXWHVRYHUWKH3UHDK9LKHDUFDVH
(a 3km long disputed territory surrounding an 11th century
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respect for the rule of law and foment diplomatic channels in
times of heightened tensions in its bilateral dealings with both
countries.
Thailand’s relationship with Myanmar, where the EU is a
top international donor and important partner, is particularly
relevant. Together, both parties can play a constructive role in
0\DQPDU &RQVXOWLQJ 7KDLODQG RQ 0\DQPDU¶V GHYHORSPHQW
especially given Bangkok’s own remarkable development
history, its knowledge of Myanmar and its cultural proximity
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for example lead the EU to target projects that have been
successful in Thailand and that could be adapted to Myanmar.
The Thai government’s role in encouraging sustainable
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Myanmar resonates with the EU’s own efforts to promote its
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initiative, which aims to protect forests and biodiversity.
Thailand is not directly involved in the dispute concerning the
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EU in promoting diplomatic solutions could help overcome the
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compatible with those of ASEAN. O
55
Vietnam
MATT BISHOP
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Africa – groups of emerging countries, the economic rise
of post-war Vietnam has been nothing short of impressive.
The Doi Moi reforms of the mid-1980s transformed much
of the country from a highly-centralised and largely-agrarian
economy into a socialist-oriented, planned market economy
that encouraged industrialisation and privatisation. Vietnam
DFKLHYHGDURXQGSHUFHQWDYHUDJH*'3JURZWKIURP
WR*URZWKZDVIXUWKHUVXVWDLQHGDWDURXQGSHUFHQW
from 2000 to 2013 as the country began its integration into
the larger world economy. Vietnam joined the World Trade
Organisation (WTO) in 2007 and is today one of the most
open economies in Asia.
While Vietnam is one of the world’s few remaining single-party
socialist states, the Vietnamese government has made important
strides in poverty reduction, promoting income equality, raising
living standards, and subsidising education and healthcare.
Equitable economic policies have contributed to reducing
poverty by nearly 50 per cent in the past 20 years. Today, 18.9
per cent of the population lives below the poverty line and the
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Vietnam
Philippines. In 2012, Vietnam’s unemployment rate was only
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the economy to become the world’s 17th largest by 2025, and
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become the fastest growing emerging economy worldwide.
7KH(8DQG9LHWQDPHVWDEOLVKHGRI¿FLDOGLSORPDWLFWLHVRQO\
in 1990, the last of the ASEAN group of states. The relationship
is also arguably the most rapidly transforming one, keeping
pace with the radical economic and social transformations in
the country over the past two decades. A primarily aid and
trade based partnership, it has quickly broadened to other
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$JUHHPHQW3&$ZDVFRQFOXGHGLQ2FWREHUVLJQHGLQ
June 2012) and the sixth round of negotiations on a bilateral
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7KHQHZ3&$LVWRSURYLGHDEHWWHUIUDPHZRUNIRULQWHUDFWLRQ
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scope of the relationship to regional and global challenges.
Bilateral merchandise trade between the EU and Vietnam
amounted to €22.9 billion in 2012, with €18.5 billion in EU
LPSRUWVIURP9LHWQDPUHVXOWLQJLQDODUJHVXUSOXVIRU+DQRL
7UDGH KDV EHHQ JURZLQJ VLJQL¿FDQWO\ VLQFH ,Q 9LHWQDP¶VH[SRUWVWRWKH(8URVHE\SHUFHQWZKLOH(8
exports to the country grew by 18 per cent. In 2012 the EU
was the second-largest destination for Vietnamese products
and its second-largest partner overall with an 11.6 per cent
share of the country’s total external trade. The EU was ahead
of Japan and the US (with 10.3 per cent and 9.9 per cent,
UHVSHFWLYHO\EXWZDVZHOOEHKLQG&KLQDZKLFKKHOGD
per cent share of Vietnam’s total external trade. Vietnam is
WKH(8¶V¿IWKODUJHVWWUDGLQJSDUWQHUZLWKLQ$6($1DQGWKH
31st globally with a 0.7 per cent share of the EU’s total foreign
trade. Trade in services in 2012 stood at around €6 billion.
The EU is the fourth-largest investment partner for Vietnam,
with almost €1 billion in FDI in 2012.
According to a Vietnam-EU Mutrap1 study, an FTA would
FUHDWHEHQH¿WVIRUERWKVLGHVLQFOXGLQJLQFUHDVHGH[SRUWVE\
Vietnam to the EU by as much as 20 per cent, and an increase
LQ9LHWQDP¶V*'3E\SHUFHQWSHU\HDU7KH)7$ZRXOG
&
BjigVe^hV:jgdeZVcIgVYZEda^XnVcY>ckZhibZciHjeedgiEgd_ZXiZmZXjiZYWnK^ZicVb¼hB^c^hign
d[>cYjhignVcYIgVYZBD>I#
57
58
also give European exporters greater access to one of the
region’s most dynamic markets and give the EU an edge over
WKHDOUHDG\VWURQJFRPSHWLWLRQWKH8QLRQIDFHVIURP&KLQD
India, the US, Japan, and other ASEAN countries. The FTA
LV QHFHVVDU\ IRU RWKHU UHDVRQV WRR$V RI -DQXDU\ WKH
*HQHUDOLVHG 6FKHPH RI 3UHIHUHQFHV *63 IRU 9LHWQDP KDV
EHHQ PRGL¿HG LQWURGXFLQJ GLIIHUHQW UHJLPHV IRU GLIIHUHQW
categories of products. The FTA would largely simplify rules
and regulations for Vietnamese traders by cutting duties to
over 90 per cent of bilateral trade. Increased liberalisation in
trade and greater regulatory approximation would also be an
effective way to counter the protectionist measures introduced
by Vietnam, which pose major market access obstacles for
EU trade and investment. Another contentious issue is the
clause on the Rules of Origin (which establish where goods
are made), in particular concerning the textile sector.
The EU and its member states together represent the secondODUJHVWGRQRURIRI¿FLDOGHYHORSPHQWDVVLVWDQFH2'$DQG
WKHELJJHVWDLGJUDQWVSURYLGHUWR9LHWQDPELOOLRQIURP
WR7KH(XURSHDQ8QLRQFRPPLWWHG¼PLOOLRQ
in ODA for 2013. Vietnam is also the European Investment
%DQN¶VOHDGLQJEHQH¿FLDU\SHUFDSLWDLQ$VLDZLWKRYHUKDOI
a billion euros in concessionary loans in the past decade.
The EU has been key in promoting sustainable development
LQ 9LHWQDP *UHHQ JURZWK LV DOVR DQ LPSRUWDQW FKDSWHU LQ
WKH )7$ ZKLFK DLPV WR EHQH¿W FRPSDQLHV DSSO\LQJ JUHHQ
technologies and the production of environmentally-friendly
items through credit support programmes or credit subsidies.
7KH (8 DQG 9LHWQDP DUH FXUUHQWO\ QHJRWLDWLQJ D )/(*7
Action Plan Voluntary Partnership Agreement to counter
LOOHJDO ORJJLQJ DQG LPSURYH IRUHVW JRYHUQDQFH *LYHQ WKDW
Vietnam is one of the most natural disaster-prone countries in
WKHZRUOG(8HPHUJHQF\DLGKDVDOVREHHQLPSRUWDQW(&+2
provided nearly €21.5 million in response to natural disasters
±¼PLOOLRQIRUGLVDVWHUSUHSDUHGQHVV±
2013), and €3.5 million in humanitarian aid for populations
DIIHFWHGE\WKHÀRRGVHVSHFLDOO\LQWKH0HNRQJ'HOWD
Political relations between the EU and Vietnam have developed
concurrently to economic engagement. For example, since
2011 the two partners hold an annual bilateral human rights
dialogue. Beyond Vietnam’s internal challenges, the country
LQFUHDVLQJO\IDFHVGLI¿FXOWFKDOOHQJHVLQLWVUHJLRQ9LHWQDP
plays a key role in regional geopolitics, engaging in strategic
EDODQFLQJEHWZHHQPDMRUSRZHUVVXFKDV&KLQD,QGLD-DSDQ
Vietnam
and the US, all of which in turn communicate with each
other in some respects via their relationship with Vietnam.
7KHODWWHULVDNH\GLVSXWDQWRIWKH6RXWK&KLQD6HDZKHUH
&KLQD¶VPXVFOHÀH[LQJKDVSHUWXUEHGPRVWRIWKHFRXQWULHVLQ
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HFRQRPLF GHSHQGHQFH RQ LWV ODUJH QHLJKERXU ,QGR&KLQHVH
ULYDOU\UHFHQWO\H[WHQGHGWRWKH6RXWK&KLQD6HDWRRZKHUH
,QGLD¶V VWDWHRZQHG RLO FRPSDQ\ 21*& 9LGHVK /WG 29/
has purchased oil exploration rights from Vietnam. The US
and Vietnam have recently expanded bilateral military ties in
¿YH DUHDV PDULWLPH VHFXULW\ VHDUFK DQG UHVFXH RSHUDWLRQV
peacekeeping operations, humanitarian assistance, and
disaster relief. Vietnam is interested in enhancing strategic
and military ties with the US. Equally, the US is eager to
DFTXLUH PRUH DFFHVV WR &DP 5DQK %D\ D IRUPHU 86 1DY\
EDVHRYHUORRNLQJWKH6RXWK&KLQD6HD
The EU as an international actor with global aspirations has a
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it the opportunity to foster its objectives of promoting peace,
maritime safety, freedom of navigation, resource sharing, and
the rule of law. O
59
QTABLE 1: COMPARATIVE INDICATORS
Indicators
Demography
Population (Mn)
1
Median Age2
Brunei Darusallam
2013
0.41
2025
2050
Economy
GDP5 (Bn €)
0.48
18.12
0.55
22.57
2013
30.5
20253
32.2
2050
43.7
8.25
321.38
10.58
24.4
27.8
20.6
27.4
27.6
33.8
25.3
31.5
36.2
38.4
32.6
39.3
39.8
Vietnam
53.26
98.40
5.41
67.01
91.68
34.96
57.65
119.22
6.33
67.90
99.81
42.11
58.65
157.12
7.07
61.74
103.70
27.9
23
38.1
36.9
29.8
33.0
27.5
47.3
37.5
34.4
31.5
50
51.1
45.6
Old Age
Child
Old Age
Child
Old Age
Child
Old Age
Child
Old Age
Child
Old Age
Child
Old Age
Child
Old Age
Child
Old Age
Child
37
5
51
6
40
9
62
6
44
7
39
8
54
7
21
14
30
11
37
9
2025
30
11
44
8
30
13
49
7
35
13
33
13
43
10
19
35
29
19
30
14
2050
28
23
31
15
27
29
34
14
28
25
28
27
32
19
20
58
28
32
27
2.2
2.2
2010
GDP per capita7 (€)
GDP Projections (Bn $)8
683.5
7.2
236.2
51.4
194.7
7.3
6.2
8.2
5.6
6.3
7.1
6.5
8
5.1
5.5
2.6
6
6.2
8.5
7.2
2012
32,010.1
736.3
2,768.8
1,089.1
2030
31.9
65.1
2,960.5
41.7
104.5 ( 2012)
-
100.2
-
2012
Merchandise (13)
110.3
6.8
1.3
6.5
5
3.6
5.2
0.1
6
5.3
7.6
14.8
7.8
6.8
8,079.5
834.6
2,013.6
40,247.1
4,265.1
1,242.1
918.3
189.2
910.3
675.8
1,191.2
595.2
127.4
-
71.1
258.9
167.1
-
%
Partner
%
Partner
%
Partner
%
Partner
%
Partner
%
Partner
%
Partner
%
Partner
%
Japan
S Korea
Singapore
China
EU
30.5
10.4
9.8
9.2
8.4
Thailand
Vietnam
China
US
EU
18.9
15.4
13.7
12.1
10.5
Japan
China
Singapore
EU
S Korea
13.9
13.4
11.3
8.4
7.1
Thailand
China
Vietnam
EU
Japan
52.5
18
9
5.9
2.7
China
Singapore
Japan
EU
US
13.8
13.4
11.1
9.8
8.4
China
Thailand
Japan
India
S. Korea
29.5
26.9
7.9
7.2
7.1
Japan
US
China
EU
Singapore
14.4
12.8
11.3
9.3
8.1
Malaysia
EU
China
Indonesia
US
11.5
10.8
10.5
8
7.8
Japan
China
EU
US
Malaysia
15.3
13.4
8.7
7.5
5.4
China
EU
Japan
US
S Korea
18.5
13.1
11.1
11
9.5
UK
Germany
The Netherlands
France
Belgium
1.
2.
3.
4.
5.
Germany
UK
The Netherlands
France
Spain
1.
2.
3.
4.
5.
Germany
The Netherlands
Italy
France
UK
43.1
Services
21.9 (2009)
29.1
Rank among EU trade partners (2012)15
102
84
5
Total Imports
284.8
Partner
136.5
(14)
32
213.8
%
1.
2.
3.
4.
5.
2012
Old Age
Partner
100
Services (Bn€) (2011)17
Thailand
Child
2011
Goods (Bn€) (2012)16
Singapore
2010
2012
Trade as a % of GDP
(2012)12
Philippines
282.01
10.9
Top 5 trading partners
(EU Member States)11
Myanmar
29.72
13.2
Top 5 trading partners
(% Goods)10
Malaysia
6.78
2012
Real GDP growth (%)6
Lao PDR
249.87
Foreign Currency Reserves9 (Bn $)(2013)
Trade
Indonesia
15.14
(Total = Child + Old Age)
Dependency Ratio4
Cambodia
1.
2.
3.
4.
5.
Germany
UK
France
Belgium
The Netherlands
1.
2.
3.
4.
5.
Germany
The Netherlands
France
UK
Italy
54.8
139.7
6.6
9.8
30
135
11.9
149.2
1.
2.
3.
4.
5.
Germany
UK
Italy
Spain
France
1.
2.
3.
4.
5.
Germany
The Netherlands
UK
France
Italy
1.
2.
3.
4.
5.
Germany
France
The Netherlands
UK
Italy
1.
2.
3.
4.
5.
Germany
UK
The Netherlands
France
Italy
1.
2.
3.
4.
5.
Germany
UK
France
The Netherlands
Italy
-
46.9
286.9
130.5
161.2
26.3
-
13.3
86.6
28.1
14.2
25
140
49
14
26
32
4.9
153.2
13.2
48
295.7
193.9
86.9
86.2
Total Exports
9.4
6.1
147.9
2.6
177.2
6.4
40.5
320.8
177.6
Imports from the EU
1.2
0.2
9.6
0.2
14.5
0.2
4.8
30.3
14.8
5.4
Exports to the EU
0.1
1.8
15.4
0.2
20.3
0.2
5.1
21.5
17
18.5
Total Imports
0.8
1.2 (2012)
25.9 (2012)
0.2
32.7 (2012)
0.8
11 (2012)
91.6 (2012)
40.9 (2012)
9.6 (2012)
Total Exports
0.7
1.9 (2012)
17.6 (2012)
0.4
29.2 (2012)
0.4
14.4 (2012)
87.1 (2012)
38.3 (2012)
7.4 (2012)
Imports from the EU
-
-
2.9
-
3.2
-
1.2
16.1
2.4
-
Exports to the EU
-
-
1.8
-
2.5
-
1.1
11.5
4.8
-
Mapping EU-ASEAN Relations
Indicators
Brunei Darusallam
Inflows ($)18 (2012) (Mn $)
Investment
Myanmar
294
10,074
Outflows ($) (2012) (Mn $)
8
31
5,423
-21
From the EU (€)20 (2011) (Mn $)
-
-
5,100
-
To the EU (€) (2011) (Mn $)
Philippines
Singapore
Thailand
Vietnam
2,243
2,797
56,651
8,607
8,368
17,115
-
1,845
23,080
11,911
1,200
3,600
-
400
5,800
1,300
-
-
-
162
-
0
-
100
8,200
100
-
13,302
8,413
205,656
2,483
132,400
11,910
31,027
682,396
159,125
72,530
699
423
11,627
-9
120,396
-
8,953
401,426
52,561
-
-
-
27,000
-
24,000
-
7,500
122,800
14,100
-
To the EU (€) (2011) (Mn $)
-
-
-2,500
-
3,800
-
1,200
67,300
500
-
R&D26
(2002-2010)27
Expenditure as % of GDP
-
-
0.1
-
0.6
-
0.1
2.7
0.2
-
286.3
17.4
89.6
15.8
364.6
18.4
78.5
5,834
315.5
115.9
Global Competitiveness
Index 2013-201428
Rank
26
88
38
81
24
139
59
2
37
70
Score
4.9
4
4.5
4.1
5
3.2
4.3
5.6
4.5
4.2
74
110
85
-
32
-
90
8
57
76
35.5
28.1
32
-
46.9
-
31.2
59.4
37.6
34.8
Inward ($)22 (2012) (Mn $)
From the EU (€)24 (2011) (Mn $)
25
Innovation and
Competitiveness
Malaysia
19,853
Outward ($)23 (2012) (Mn $)
Researchers per million people
Rank
Global Innovation Index
2013 Overall Rankings29
GII Score
Market Size30 31
Market Readiness (Ranking)
Lao PDR
1,557
21
FDI Stock
131
92
15
122
26
79
33
34
22
36
Quality of Overall Infrastructure32
39
86
82
65
25
146
98
5
61
110
Business Sophistication33
56
86
37
78
20
146
49
17
40
98
-
115
56
125
30
138
60
4
44
75
Intellectual Property Protection
39
99
55
64
30
126
78
2
102
116
Strength of Investor Protection
100
69
41
146
4
-
107
2
13
134
Prevalence of Trade Barriers35
70
80
71
79
30
108
60
4
50
104
Country Credit Rating34
Availability of Financial Services
57
81
51
79
22
142
40
5
26
93
Availability of Latest Technologies
50
82
60
112
37
148
47
16
75
134
30
138
121
138
64
149
114
18
103
127
Voice and Accountability
33
19
51
5
38
4
48
54
37
6
Political Stability39
77
41
27
47
45
18
15
97
13
56
Government Effectiveness40
75
22
44
21
80
4
58
100
61
44
Rule of Law41
73
17
34
23
66
6
36
96
50
38
Rank
38
160
114
140
53
157
94
5
102
116
Score
-
36
38.1 (2011)
-
46.2
-
43
47.8
40
-
Human Development Index
(2013)36
Governance and Society
Indonesia
850
19
FDI Flows
Cambodia
Rank
38
Governance Indicators 201237
(By Rank 0=Lowest, 100=Highest)
42
Corruption Perceptions Index
43
GINI Index (2009)
61
QTABLE 1: COMPARATIVE INDICATORS
EU Instruments
Military Balance
Energy, Environment and Resources
Indicators
Brunei Darusallam
Cambodia
Indonesia
Lao PDR
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
Total production of energy44
2011 (Mtoe)
18.69
3.64
346.99
-
93.12
23.10
23.25
0.00
63.88
71.38
Total net imports of energy45
2011 (Mtoe)
-14.61
1.61
-147.34
-
-17.61
-7.29
18.80
55.85
46.24
-10.63
Total primary energy
supply46
2010 (Mtoe)
3.3
5
207.8
-
72.6
14
38.4
32.8
117.4
59.2
Renewable energy47
2010 (% of TPES)
0
3.6
71.6
-
4
11
14.1
0.2
23.1
17.1
Mt of CO
48
2
8.91
4.09
425.88
193.96
8.25
77.12
64.77
243.19
137.36
0.88
0.14
1.06
-
1.04
0.45
0.57
0.37
1.16
1.75
21.94
0.28
1.76
-
6.72
0.17
0.81
12.49
3.50
1.56
Million $
411
217
6,866
18.7 (2011)
4,697
-
2,977
9,722
5,387
3,363
As a % of GDP
2.4
1.6
0.8
0.2 (2011)
1.5
-
1.2
3.6
1.5
2.4
26/87
341/43
1546/21
-
910/28
-
701/33
-
38/82
-
EIDHR 2011-201353
-
900,000
900,000
600,000
300,000
900,000
900,000
-
-
600,000
Development Cooperation Instrument 2007-2013 (Mn €)54
0
152
494
-
150
17 (package assistance
2012-2013)
130
0
17
304
Masters Courses 2004-201355
-
27
344
10
166
14
225
41
269
313
Doctorates 2004-201356
-
1
8
-
4
2
7
1
6
15
CO2 emissions (2011)
Emissions/GDP (Kg CO2/2005 $)49
50
Per capita (t CO2)
Defence Budget51
(2012)
Military Interventions
Scholarships – Erasmus
Mundus
Personnel contribution to
UN Peace-keeping Operations/
Rank (2012)52
QENDNOTES
1 World Population Prospects: the 2012 Revision, Department of Economic and Social Affairs, United Nations. Medium variant,
available at: http://esa.un.org/wpp/Documentation/pdf/WPP2012_%20KEY%20FINDINGS.pdf
2 Ibid.
3 Ibid., 2008 Revision.
4 Ibid.
5 Bilateral Relations, Country Factsheets, DG Trade, European Commission, available at http://ec.europa.eu/trade/creatingopportunities/bilateral-relations/countries-and-regions/ Data from: World Economic Outlook, International Monetary Fund.
GDP measured at market rates.
6 Ibid.
7 Ibid.
8 World in 2050: The BRICs and beyond: prospects, challenges and opportunities, PwC (PricewaterhouseCoopers) – available
at: http://www.pwc.com/en_GX/gx/world-2050/assets/pwc-world-in-2050-report-january-2013.pdf
9 Data Template on International Reserves and Foreign Currency Liquidity, International Monetary Fund.
10 Op. Cit. in Note 5.
11 European Commission, DG Trade - available at : http://exporthelp.europa.eu/thdapp/display.htm;jsessionid=EC7BB31319B07
F177CD70C7665FEB36F?page=st%2fst_Statistics.html&docType=main&languageId=en
12 World Development Indicators, The World Bank, available at: http://data.worldbank.org/products/wdi
13 Merchandise trade as a share of GDP is the sum of merchandise exports and imports divided by the value of GDP, all in
current US dollars. World Trade Organization and World Bank GDP estimates.
14 Trade in services is the sum of service exports and imports divided by the value of GDP, all in current US dollars.
15 Op. Cit. in Note 5.
16 Ibid.
17 Ibid.
18 World Investment Report 2013: Global Value Chains: Investment and Trade for Development, United Nations Conference on
Trade and Development statistics, available at http://unctad.org/en/Pages/DIAE/World%20Investment%20Report/World_
Investment_Report.aspx
19 Ibid.
20 Op. Cit. in Note 5.
21 Ibid.
22 Op. Cit. in Note 18.
23 Ibid.
24 Op. Cit. in Note 5.
25 Ibid.
26 Human Development Report 2013, United Nations Development Programme, Available at: http://hdr.undp.org/en/content/
human-development-report-2013
27 Data refer to the most recent year available during the period specified.
28 K. Schwab, The Global Competitiveness Report 2013-2014, World Economic Forum, 2013.
29 S. Dutta and B. Lanvin, The Global Innovation Index 2013, Cornell University, INSEAD and the World Intellectual Property
Organization, 2013.
30 All market readiness indicators are reported in the Global Innovation Index, Op. Cit. in Note 29.
31 Market Size is the sum of gross domestic product plus value of imports of goods and services, minus value of exports of
goods and services, 2012.
Mapping EU-ASEAN Relations
32 Assessment of general infrastructure (e.g., transport, telephony, and energy), 2012-13.
33 Business sophistication concerns two elements that are intricately linked: the quality of a country’s overall business
networks and the quality of individual firms’ operations and strategies.
34 Institutional Investor’s Country Credit Ratings are based on expert assessment of the probability of sovereign debt default,
March 2013.
35 The extent to which non-tariff barriers (e.g., health and product standards, technical and labeling requirements, etc.) limit the
ability of imported goods to compete in the domestic market, 2012-13.
36 Op. Cit. in Note 26.
37 The Worldwide Governance Indicators, World Bank, 2013.
38 Reflects perceptions of the extent to which a country’s citizens are able to participate in selecting their government, as well
as freedom of expression, freedom of association, and a free media.
39 Reflects perceptions of the likelihood that the government will be destabilised or overthrown by unconstitutional or violent
means, including politically-motivated violence and terrorism.
40 Reflects perceptions of the quality of public services, the quality of the civil service and the degree of its independence from
political pressures, the quality of policy formulation and implementation, and the credibility of the government’s commitment
to such policies.
41 Reflects perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the
quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence.
42 Corruption Perceptions Index 2013, Transparency International, 2013.
43 GINI Index, The World Bank,The Gini coefficient measures the degree of inequality in the distribution of family income in a
country. A value of 0 represents absolute equality; a value of 100 absolute inequality.
44 Key World Energy Statistics 2013, International Energy Agency.
45 Ibid.
46 Renewables Information, International Energy Agency, 2012. The total primary energy supply (TPES) is made up of
production + imports – exports – international marine bunkers – international aviation bunkers +/- stock changes.
47 Ibid., Renewables include: hydroelectricity, geothermal, solar photovoltaic, solar thermal, tide, wave, ocean, wind, solid
biomass, biogas, liquid biomass and renewable municipal waste.
48 Op. Cit. in Note 44. Figures only include emissions from fossil fuel combustion.
49 Ibid., GDP at market exchange rates.
50 Ibid.
51 SIPRI military expenditure database, available at : http://www.sipri.org/research/armaments/milex/milex_database
52 Ranking of Military and Police Contributions to UN Operations, UN Factsheet, 31 December 2013.
53 Multiannual Indicative Planning – European Commission – Available at: http://ec.europa.eu/europeaid/what/human-rights/
documents/20110321_mip_eidhr_2011-2013_for_publication3_en.pdf
54 European External Action Service, available at: http://ec.europa.eu/europeaid/where/asia/country-cooperation/index_en.htm
55 European Commission - Erasmus Mundus Masters Courses, number of enrolled students – 2013, available at: http://eacea.
ec.europa.eu/erasmus_mundus/results_compendia/documents/statistics/cumulative/statistics_by_country_erasmus_
mundus_masters_students_selected_each_academic_year,_2004-05_to_2013-14.pdf
56 European Commission – Erasmus Mundus Doctorates, number of enrolled students – 2013, available at: http://eacea.
ec.europa.eu/erasmus_mundus/results_compendia/documents/statistics/cumulative/statistics_by_country_erasmus_
mundus_doctorates_candidates_selected_each_academic_year,_2010-11_to_2012-13.pdf
63
QTABLE 2: TOP TRADE PARTNERS OF ASEAN MEMBER STATES
2012
Brunei
Cambodia
Indonesia
Lao PDR
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
2011
Brunei
Cambodia
Indonesia
Lao PDR
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
2010
Brunei
Cambodia
Indonesia
Lao PDR
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
5
1
Japan
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
China
2
ASEAN
China
Japan
China
China
China
Japan
EU
Japan
ASEAN
3
South Korea
US
China
EU
Japan
Japan
US
China
China
EU
4
China
EU
EU
Japan
EU
India
China
US
EU
Japan
EU
Japan
South Korea
South Korea
US
South Korea
EU
Japan
US
US
1
Japan
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
China
2
ASEAN
US
Japan
Australia
China
China
Japan
EU
Japan
ASEAN
3
South Korea
China
China
China
Japan
India
US
China
EU
EU
4
5
Australia
EU
EU
EU
EU
Japan
China
US
US
Japan
India
Japan
South Korea
Japan
US
South Korea
EU
Japan
South Korea
US
1
Japan
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
China
2
ASEAN
US
Japan
US
China
China
Japan
EU
Japan
ASEAN
3
South Korea
China
China
China
Japan
India
US
China
China
US
4
5
Australia
EU
EU
Australia
EU
Japan
EU
US
EU
EU
China
Canada
US
EU
US
South Korea
China
Japan
US
Japan
Mapping EU-ASEAN Relations
2009
Brunei
Cambodia
Indonesia
Lao PDR
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
2008
Brunei
Cambodia
Indonesia
Lao PDR
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
3
South Korea
China
China
Australia
EU
India
US
China
China
EU
4
5
India
EU
EU
EU
US
Japan
EU
US
US
US
Australia
Canada
US
Japan
Japan
South Korea
South Korea
Japan
EU
Japan
1
Japan
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
China
2
ASEAN
US
Japan
China
China
China
Japan
EU
Japan
ASEAN
1
Japan
US
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
ASEAN
China
2
3
4
5
ASEAN
ASEAN
Japan
China
US
China
US
EU
Japan
ASEAN
Australia
China
China
Japan
EU
India
Japan
China
EU
Japan
South Korea
EU
EU
Australia
China
Japan
EU
US
China
US
EU
Canada
South Korea
South Korea
South Korea
South Korea
China
Japan
US
South Korea
65
EU-ASEAN dialogues
Ministerial dialogues
EU-ASEAN Ministerial Meeting 7^Zcc^Va
ASEAN Economic Ministers and EU Trade Commissioner
Consultations Meeting (AEM-EU) 6ccjVa
66
Other dialogues
EU-ASEAN Joint Cooperation Committee 6ccjVa
EU-ASEAN Meeting of the Committees of Permanent Representatives ;^ghi]ZaY^c'%&)
EU-ASEAN SOM on Trans-national Crime (SOMTC) 6ccjVa
EU-ASEAN dialogue on human rights 6ccjVa
EU-ASEAN dialogue on ICT 6ccjVa
EU-ASEAN dialogue on aviation 6ccjVa
EU-ASEAN dialogue on climate change 6ccjVa
EU-ASEAN dialogue on energy 6ccjVa
EU-ASEAN dialogue on science and technology ;^ghi]ZaY^c'%&(
EU-ASEAN High Level Dialogue on Maritime Cooperation ;^ghi]ZaY^c'%&(
List of Abbreviations
AADMER
68
ASEAN Agreement on Disaster Management and
Emergency Response
CTBT
Comprehensive Test Ban Treaty
DCI
Development Cooperation Instrument
AAP-JRCC
ASEAN Action Plan on a Joint Response to Climate Change
DIPECHO
ECHO Disaster Preparedness Programme
ACCI
ASEAN Climate Change Initiative
EASCAB
EU-ASEAN Statistical Capacity Building Programme
ADB
Asian Development Bank
EBA
Everything But Arms
ADMM+
ASEAN Defence Ministers Meeting Plus
EC
European Community
AEMF
ASEAN’s Expanded Maritime Forum
AFCC
ASEAN Framework on Climate Change and Food Security
ECAP
EU-ASEAN Project on the Protection of Intellectual Property Rights
AFTA
ASEAN Free Trade Area
ECCIL
EU Chamber of Commerce and Industry
ECHO
European Community Humanitarian Office
EEZ
Exclusive Economic Zones
AHA Centre ASEAN Coordinating Centre for Humanitarian Assistance on
Disaster Management
AICHR
ASEAN Intergovernmental Commission on Human Rights
EIDHR
European Instrument for Democracy and Human Rights
APEC
Asia-Pacific Economic Cooperation
EIF
Enhanced Integrated Framework
ARF
ASEAN Regional Forum
EU
European Union
ARISE
ASEAN Regional Integration Support from the EU
EU SHARE
EU Support to Higher Education in ASEAN Region
ASEAN
Association of Southeast Asian Nations
EWGs
Expert Working Groups
AWGCC
ASEAN Working Group on Climate Change
FDI
Foreign Direct Investment
CBRN
Chemical, Biological, Radiological and Nuclear
FLEGT
Forest Law Enforcement, Governance and Trade
CIVETS
Colombia, Indonesia, Vietnam, Egypt, Turkey, and Thailand
FTA
Free Trade Agreement
CNRP
Cambodia National Rescue Party
G20
Group of 20
CSDP
Common Security and Defence Policy
GDP
Gross Domestic Product
Mapping EU-ASEAN Relations
GHG
Greenhouse Gases
NSEDP
National Socio-Economic Development Plan
GIs
Geographical Indications
ODA
Official Development Assistance
GSP
Generalised Scheme of Preferences
OIC
Organisation of Islamic Countries
HADR
Humanitarian Assistance and Disaster Relief
PCA
Partnership and Cooperation Agreement
HDI
Human Development Index
PERC
EU Rehabilitation Programme for Cambodia
IMF
International Monetary Fund
READI
Regional EU-ASEAN Dialogue Initiative
IP
Intellectual Property
ISAF
NATO International Security Assistance Force
ReCAAP
Regional Cooperation Agreement on Combating Piracy
and Armed Robbery against Ships
ISG
Inter-Sessional Group
RCEP
Regional Cooperation Economic Partnership
JCC
Joint Cooperation Committee
SMEs
Small and Medium Size Enterprises
LDCs
Least Developed Countries
SOM
Senior Officials Meeting
LGBT
Lesbian, Gay, Bisexual, and Transgender
TAC
Treaty of Amity and Cooperation
Lao PDR
Lao People’s Democratic Republic
TDF
Trade Development Facility
TPP
Trans-Pacific Partnership
LPRP
Lao People’s Revolutionary Party
TRA
Trade-Related Assistance
MDGs
Millennium Development Goals
UNCLOS
United Nations Convention on the Law of the Sea
MFN
Most favoured nation
UNICRI
United Nations Inter-regional Crime and Justice Research Institute
MILF
Moro Islamic Liberation Front
OVL
ONGC Videsh Ltd
NGO
Nongovernmental organisation
UXO
Unexploded Ordnance
NLD
National League for Democracy
WTO
World Trade Organisation
NPT
Treaty on the Non-Proliferation of Nuclear weapons
69